Nichols enterprises should carry the investment on its balance sheet at $399,000 (28500 X $14)
Nichols Enterprises has an investment in 28 500 bonds of Elliott Electronics that Nichols accounts for...
Nichols Enterprises has an investment in 31,500 bonds of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $13 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $24 per bond. Nichols should carry the Elliott investment on its balance sheet at: Multiple Choice $756,000. ...
Nichols Enterprises has an investment in 26,000 bonds of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $13 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $22 per bond. Nichols should carry the Elliott investment on its balance sheet at: Multiple Choice $455,000,...