A hospital invested $780,000 in equity securities in March 2018. When it prepared its financial statements at year-end, the securities had a fair value of $802,000. How should the hospital report the securities in its balance sheet at year end?
A) Report the securities at cost ($780,000) .
B) Report the securities at cost ($780,000) and show the fair value ($802,000) parenthetically next to the caption "Investments"
C) Report the securities at cost ($780,000) and show the fair value ($802,000) in the notes to the financial statements.
D) Report the securities at the fair value ($802,000)
Correct Answer:
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