Question

not-for-profit organization held the following investments: Investment Cost Fair value (beginning of year) Fair value (end of year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49 What amount of stock investments should be reported in the year-end statement of financial position?

Answer 1

Answer:

$14,900

Explanation:

not-for-profit organization will report the investments at the fair value of the investments end of year, in the year-end statement of financial position.

Here,

Investment                                   Fair value (end of year)

Stock A (100 shares)                                     $51

Stock B (200 shares)                                    $49

Stock A = (100 * 51) = $5,100

Stock B = (200 * 49) = $9,800

Total Investment fair value at end of year = $14,900

$14,900 will be the amount reported in stock investments in the year-end statement of financial position.