Question

The following information applies to the questions displayed below stoll company's long-term available-for-sale portfolio at the start of this year consists of the following available for sale securities company a bonds company notes company bonds cost 534,100 159,140 662,400 fair value 492,000 155,000 642,140 stoll enters into the following transactions involving its available -for-sale debt securities this year january 29 sold one-half of the company notes for $78,820 . july 6 purchased company x bonds for $122,100 . november 13 purchased company notes for $267,300 . december 9 sold all of the company a bonds for $524,800 fair values at december 31 are b $82,300 c $603,800 $120,000 and $276,000

What is the fair value of company X bonds at the end of the year based on the provided information?

a) $82,300
b) $603,800
c) $120,000
d) $276,000

Answer 1

The fair value of Company X bonds at year-end cannot be determined from the provided information without additional context linking fair values to specific securities.

Step-by-step explanation:

The question pertains to the evaluation of fair value of Company X bonds at the end of the year based on the provided financial information of the Stoll Company's long-term available-for-sale portfolio. Based on the data provided, the fair values at December 31 for the securities are mentioned as follows: B $82,300, C $603,800, $120,000, and $276,000. In the context of the question, these values correspond to different securities, and the fair value of Company X bonds at the end of the year that was purchased on July 6 for $122,100 is stated as one of these amounts. To determine which of these amounts corresponds to the Company X bonds, we would need additional information specifying which label (B, C, etc.) refers to which security since it is not provided in the question. However, since Company X bonds are not mentioned explicitly in the list, we cannot definitively determine the fair value at year-end without further clarification.