Homework Answers
The correct answer is "d) $465,000.
Supporting calculations:
| Amount invested in Common Stock (10,000 shares * $45 per share) | $450,000 |
| Add: Amount invested in the bonds | $15,000 |
| Total amount invested as available-for-sale securities | $465,000 |
Amount invested in both common stock and in the bonds as available-for-sale securities are treated as investments in available-for-sale securities. Thus, the D option of $465,000 is correct.
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