Fulton Company owns the following investments: Fulton will report investments in its current assets section of
A) $0.
B) exactly $140,000.
C) $140,000 or an amount greater than $140,000, depending on the circumstances.
D) exactly $210,000.

Question

Fulton Company owns the following investments:  Fulton will report investments in its current assets section of
A) $0. 
B) exactly $140,000. 
C) $140,000 or an amount greater than $140,000, depending on the circumstances. 
D) exactly $210,000.

Quizplus · Accepted Answer

Since we do not know the fair value of the investments and whether they have increased or decreased in value, we cannot determine the exact amount of the investment. Fulton will report the investments in its current assets section at cost or fair value, whichever is less. Therefore, the investments may be reported for $140,000 or an amount greater than $140,000, depending on the circumstances.

Fulton Company Owns the Following Investments: Fulton Will Report