Question

16. The City of Sycamore has investments in bonds. These bonds have an amortized cost of $1,997,000. At year end, the financial press reports a market value of $2,002,600 for these bonds. The original cost of the bonds was $1,993,000. The par value at maturity will be $2,000,000. The amount at which the investments would be reported is: A) $1,997,000 B) $1,992,000

Answer 1

$200,2600

Step-by-step explanation:

Given that

Amortized cost of the bond = $1,997,000

Market value of the bond = $2,002,600

Original cost of the bond = $1,993,000

Par value = $2,000,000

So by considering the above information, the amount that is to be reported in the investment is equal to the market value of the bond i.e $200,2600

Therefore, all other values are ignored