Question

At the end of year 1, Rome Inc. held marketable debt securities classified as available-for-sale securities. The securities were carried at market value of $57,320 with a net unrealized loss of $12,350. What was the historical cost of the marketable debt securities available for sale

Answer 1

historical cost is $69,670

Explanation:

Given data

market value = $57,320

net unrealized loss = $12,350

to find out

historical cost

solution

we have given market value and net unrealized loss is $12,350 so

So that historical cost of marketable securities debt is sum of both market value and net unrealized loss

historical cost = market value + net unrealized loss

put value we get

historical cost = $57320 + $12350

historical cost = $69,670