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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Definitions:

Social Enterprise School

A concept in social entrepreneurship that focuses on strategies for solving social problems by using business-like operations and thinking.

Social Innovation School

Educational institutions or programs that focus on teaching methods and strategies for solving social problems through innovative solutions.

Disruptive Forces

Elements or innovations that radically change industry patterns, market activities, or the way businesses operate.

Social Entrepreneurs

Individuals who pursue innovative solutions to social problems through entrepreneurial principles, often focusing on creating social capital rather than profits.