The fair value of the bonds at the end of the current year


Question - On January 1 of the current year, Barton Co. paid $900,000 to purchase two-year, 8%, $1,000,000 face value bonds that were issued by another publicly-traded corporation. Barton plans to sell the bonds in the first quarter of the following year. The fair value of the bonds at the end of the current year was $1,020,000. At what amount should Barton report the bonds in its balance sheet at the end of the current year?

$1,000,000

900,000

$950,000

$1,020,000

Solution Preview :

Prepared by a verified Expert
Accounting Basics: The fair value of the bonds at the end of the current year
Reference No:- TGS02727005

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)