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GalinKa [24]
3 years ago
10

Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio

n's bonds are publicly traded and the prevailing market price indicates that Dyckman's investment is worth $20,000. However, Dyckman management believes that the bond market is generally overvalued, and their analysis of the Thomas investment suggests to them that it is worth $18,000. Dyckman should carry the Thomas investment on its balance sheet at:
Business
1 answer:
gtnhenbr [62]3 years ago
5 0

Answer:

$20,000

Explanation:

The small investment in equities and bonds must be valued at market value and must not be accounted for in-accordance with the speculation of the company. So the market value here is $20,000 and must be valued at this price irrespective of the management valuation.

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