Question

Seybert Systems accounts for its investment in Wang Engineering bonds as available-for-sale. Seybert's balance in accumulated other comprehensive income with respect to the Wang investment is a credit balance of $20,000, and Seybert reports the investment as $100,000 on its balance sheet. Seybert purchased the Wang investment for (ignore taxes):_______

Answer 1

Seybert purchased the Wang investment for $80,000

Step-by-step explanation:

given data

credit balance = $20,000

investment = $100,000

to find out

Seybert purchased the Wang investment for

solution

As here is a credit balance so that stock is increased by $20,000

the stock was purchased as

stock purchased = investment - credit balance ...................1

put here value we get

stock purchased cost = $100,000 - $20,000

stock purchased cost = $80,000

so Seybert purchased the Wang investment for $80,000