Question

Exerdse 17-21 Your answer is partally conrect. Try again. Presented below is selected Information related to the financlal Instruments of Sweet Company at December 31, 2017, This is Sweet Company's first year of operations, Fair Value Carrying (at December Amount nvestment in debt securities intent is to hold to maturity nvestment in Chen Company stock Bonds payable 07,200$38,000 917,500 37,800 (a) Sweet elects to use the fair value option for these f ue aption far financial liabilities is discussed in Chapter 14). Assuming that Sweet's net income is $105,500 in 2017 before reparting any securities gains or lasses, determine Sweet's net ncoma for 2017 (assume that the difference betwaen the carrying value and fair value is dua to credit detarioration). nancial instruments (the fair va et incorme is $ s net Sweet's net Income for 2017 253800

Answer 1

	Sweet's net income for 2017 = 105,600 + (38,800-37,800) + (917,500-797,200) = 105,600 + 1,000 + 120,300 = 226,900