A Local Government Began the Year with a Portfolio of Securities

question 47

Multiple Choice

A local government began the year with a portfolio of securities with an historical cost of $1,200 and a fair value of $1,240.During the year the government acquired an additional security at a cost of $260 and sold for $200 a security that had an historical cost of $172 and a fair value at the beginning of the year of $190.At the end of the year, the securities portfolio had a fair value of $1,330.The amount that should be recognized on the financial statements for the year as investment income is

• A)$10.
• B)$20.
• C)$28.
• D)$30.

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