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6. The City of Naples has investments in bonds. These bonds have an carrying value of...

6. The City of Naples has investments in bonds. These bonds have an carrying value of $3,997,000. At year end, the financial press reports a market value of $3,994,600 for these bonds. The original cost of the bonds was $3,993,000. The par value at maturity will be $4,000,000. The amount at which the investments would be reported is:

$4,000,000

$3,994,000

$3,997,000

$3,993,000

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Answer #1

Option C is the answer

Investments should be reported in the financial statements at their carrying value.

= $3,997,000

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Answer #2

McGraw hill says it is $3,994,600

source: McGraw Hill
answered by: Amanda
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