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Fisher Corporation Has the Following Investments at September 30, 2020

Question 67

Multiple Choice

Fisher Corporation has the following investments at September 30, 2020:  Historical cost  Fair value  Sept 30,2019 Fair value  Sept 30, 2020  Shares of ABC $25,000$15,000$25,000 Bonds of Brooke 10,00012,00011,000 Shares of CooksTown 12,00018,00016,000 Shares of Davenport 18,00020,00019,000\begin{array}{|l|r|r|r|} \hline & \text { Historical cost } & \begin{array}{r}\text { Fair value } \\\text { Sept } 30,2019\end{array} & \begin{array}{r}\text { Fair value } \\\text { Sept 30, 2020 }\end{array} \\\hline \text { Shares of ABC } & \$ 25,000 & \$ 15,000 & \$ 25,000 \\\hline \text { Bonds of Brooke } & 10,000 & 12,000 & 11,000 \\\hline \text { Shares of CooksTown } & 12,000 & 18,000 & 16,000 \\\hline \text { Shares of Davenport } & 18,000 & 20,000 & 19,000\\\hline \end{array}
What method of accounting will Fisher use to account for its investment in ABC, if this investment is held for trading purposes?


A) Amortized cost.
B) Equity method.
C) Fair value through other comprehensive income.
D) Fair value through profit or loss.

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