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abc company purchased securities for $400000. abc paid brokerage costs of $6000. these securities were classified...

abc company purchased securities for $400000. abc paid brokerage costs of $6000. these securities were classified as trading securities. the amount to record as the cost of this investment is:

A. $410,000

B.$414,000

C.$406,000

D.$400,000

E.$394,000

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Answer #1

Particulars amount ( in dollars)

Purchase of securities $400,000

add Brokerage $6,000

Cost of investment $406,000

Note: Unrealized gain on securities is being computed when how many securities are being purchased and what price they are being purchased are given. But in the above question it is not being given about the amount of securities being purchased so it should not be computed

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