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At what value each of these investments is reported

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Question - Inc. reports the following investments at December 31, 2019:

Investment / classification

Amoco Co. bonds (hold to maturity)

Cost $330

Market $290

BP Corp bonds (available for sale)

Cost 800

Market 825

Chevron Inc bonds (trading)

Cost 550

Market 515

Delta Gas stock (available for sale)

Cost 1,100

Market 1,600

Esso Petroleum stock (available for sale)

Cost 1,500

Market 950

All investments were purchased during the year ending 12/31/19 and have never been adjusted to date.

1. Explain at what value each of these investments is reported on Stern's balance sheet.

2. For each investment which will be reported at a value other than its cost, indicate how the unrealized value fluctuation will impact the ending balance of the retained earnings account for the year ended 12/31/19.

Reference no: EM132724978

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