Liberty County maintains an investment pool on behalf of certain cities within t

Question

Liberty County maintains an investment pool on behalf of certain cities within the county. When it prepares its statement of fiduciary net assets at year-end, how should Liberty value the corporate securities that it holds on behalf of the cities?
a. at the amount of cash originally sent by the cities for investment
b. at the amount paid by the county to acquire the securities
c. at the fair value (at year-end) of the securities held on behalf of the cities
d. at the average value of the securities held during the year on behalf of the cities

Explanation / Answer

Option " b" is the correct answer. Thoug the clints pay amount to the company ,it can't show all the amount as an investment.So option "b" case should be correct.As per this Liberty County shown under investments how much it is paid to acquire the secrities would be accounted .

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