Determine the amount Guido Inc. will record as an investment on its balance sheet under the three scenarios: Weiner is considered trading marketable equity security (MES), available for sale (AFS) MES or using cost method. $$\begin{array} { | l | c | c | c | }
\hline & \text { Trading MES } & \text { AFS MES } & \underline { \text { Cost } } \
\hline \text { A) } & \$ 60,000 & \$ 60,000 & \$ 60,000 \
\hline \text { B) } & \$ 66,000 & \$ 60,000 & \$ 60,000 \
\hline \text { C) } & \$ 60,000 & \$ 66,000 & \$ 60,000 \
\hline \text { D) } & \$ 66,000 & \$ 66,000 & \$ 60,000 \
\hline
\end{array}$$

Question

Determine the amount Guido Inc. will record as an investment on its balance sheet under the three scenarios: Weiner is considered trading marketable equity security (MES), available for sale (AFS) MES or using cost method. $$\begin{array} { | l | c | c | c | } 
\hline & \text { Trading MES } & \text { AFS MES } & \underline { \text { Cost } } \
\hline \text { A) } & \$ 60,000 & \$ 60,000 & \$ 60,000 \
\hline \text { B) } & \$ 66,000 & \$ 60,000 & \$ 60,000 \
\hline \text { C) } & \$ 60,000 & \$ 66,000 & \$ 60,000 \
\hline \text { D) } & \$ 66,000 & \$ 66,000 & \$ 60,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Trading and AFS securities are recorded at fair value, which is $66,000, while the cost method records the investment at its original cost, $60,000.

Determine the Amount Guido Inc A) Choice a B) Choice B C) Choice C D)

Determine the Amount Guido Inc A) Choice a
B) Choice B
C) Choice C
D)