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A Hospital Invested $780,000 in Equity Securities in March,2012

Question 7

Multiple Choice

A hospital invested $780,000 in equity securities in March,2012.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 he financial statements.
D) report the securities at the fair value ($802,000)

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