Elio Co.purchased the following portfolio of trading securities during 2014 and reported the following balances at December 31,2014.No sales occurred during 2014.All declines are considered to be temporary. The carrying value of the portfolio at December 31,2014,on Elio Co.'s balance sheet would be

Question

Elio Co.purchased the following portfolio of trading securities during 2014 and reported the following balances at December 31,2014.No sales occurred during 2014.All declines are considered to be temporary.  The carrying value of the portfolio at December 31,2014,on Elio Co.'s balance sheet would be

Quizplus · Accepted Answer

The carrying value of the portfolio is the sum of the fair values of the securities that have declined in value, which in this case is $242,000 (the sum of the fair values of the two securities that have declined in value). The fair values of the other three securities have not declined, so their carrying values are equal to their fair values. Therefore, the total carrying value of the portfolio is $242,000 + $20,000 + $50,000 + $60,000 + $70,000, which equals $242,000.

Elio Copurchased the Following Portfolio of Trading Securities During 2014 and and Reported