A Debt Service Fund accumulates resources to retire debt that is due in a lump sum in the year 2021. The Fund held marketable securities that cost $900,000 when purchased during 2013 and 2014. The securities had fair values of $875,000 on January 1, 2020, and $930,000 on December 31, 2020. The average fair value during the year was $895,000. At what amount should the Fund report the securities in its balance sheet on December 31, 2020?

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Investments in marketable securities held by governments are reported at fair value. The fair value of securities held by the Debt Service Fund on December 31, 2020 is $930,000.

A Debt Service Fund Accumulates Resources to Retire Debt That