Jameson Co. reports trading securities of $10,000 on their balance sheet. Assumi
ID: 2516113 • Letter: J
Question
Jameson Co. reports trading securities of $10,000 on their balance sheet. Assuming the company followed GAAP, how was the $10,000 figure determined?
A. $10,000 is the original cost of the securities.
B. $10,000 is the carrying value of the securities.
C. $10,000 is the fair value of the securities.
D. None of the above.
A. $10,000 is the original cost of the securities.
B. $10,000 is the carrying value of the securities.
C. $10,000 is the fair value of the securities.
D. None of the above.
Explanation / Answer
Answer is C $10,000 is the fair value of the securities.
Under US GAAP investment in trading securities are reported on the balance sheet at fair value