On July 1, 2014, Surf Company Purchased Long-Term Investments in Available-For-Sale

question 40

Multiple Choice

On July 1, 2014, Surf Company purchased long-term investments in available-for-sale securities as follows: Blue Corporation common stock (par $5) 2,000 shares at $16 per share.
Black Company preferred stock (par $20) 1,500 shares at $30 per share.
The quoted market prices per share on December 31, 2014 were as follows:
Blue Corporation stock, $15 per share
Black Company stock, $30 per share
Each of the long-term investments represents 10% of the total shares outstanding. The combined carrying value of the long-term investments reported in the balance sheet at December 31, 2014 would be which of the following?

• A) $77,000.
• B) $73,500.
• C)$71,500.
• D)$75,000.

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Definitions:

Mitochondria

Organelles within a cell that are responsible for producing energy through the process of oxidative phosphorylation.

Blastospores

A type of asexual spore or bud that is produced by some fungi and can give rise to a new organism without sexual reproduction.

Coenocytic

Describes cells that contain multiple nuclei within a shared cytoplasm, typically found in some fungi and algae.

Ascomycetes

Ascomycetes, also known as sac fungi, are a large phylum of fungi characterized by the formation of spores in sac-like structures called asci.