Garret Company owns the following investments: $$\begin{array} { l r }
\text { Trading securities (fair value) } & \$ 60,000 \
\text { Available-for-sale securities (fair value) } & 35,000 \
\text { Held-to-maturity securities (amortized cost) } & 47,000
\end{array}$$ Garret will report investments in its current assets section of
A)$0.
B)exactly $60,000.
C)$60,000 or an amount greater than $60,000, depending on the circumstances.
D)exactly $95,000.

Question

Garret Company owns the following investments: $$\begin{array} { l r } 
\text { Trading securities (fair value) } & \$ 60,000 \
\text { Available-for-sale securities (fair value) } & 35,000 \
\text { Held-to-maturity securities (amortized cost) } & 47,000
\end{array}$$ Garret will report investments in its current assets section of
A)$0.
B)exactly $60,000.
C)$60,000 or an amount greater than $60,000, depending on the circumstances.
D)exactly $95,000.

Quizplus · Accepted Answer

Trading securities are reported at fair value in the current assets section. Available-for-sale securities may be reported at fair value in the current assets section or at amortized cost in the noncurrent assets section. Held-to-maturity securities are reported at amortized cost in the noncurrent assets section.

Garret Company Owns the Following Investments Garret Will Report Investments in Its Current Assets Section of }