The Data Below Pertains to the Values of Various FVTPL

question 51

Multiple Choice

The data below pertains to the values of various FVTPL investments held by a client company: $\begin{array}{|l|l|l|l|}\hline\text { Stock } & \text { Shares } & \text { Cost } & \begin{array}{l}\text { Market Value } \\(\mathbf{1 2} / \mathbf{3 1} / \mathbf{2 0 1 1}) \end{array} \\\hline\mathrm{X} & 500 & \$ 30=\$ 15,000 & \$ 24=\$ 12,000 \\\hline Y & 1,000 & 20=20,000 & 30=30,000 \\\hline Z & 750 & 24=18,000 & 30=22,500\\\hline\end{array}$ The company's entire FVTPL portfolio should be valued at which amount on December 31^st,2011?

• A)$50,000
• B)$53,000
• C)$64,500
• D)$67,500

---

Definitions:

Residual Value

The projected sale price of an asset at the termination of its operational life.

Depreciation Expense

Apportioning the expense of a concrete asset across its serviceable life.

Useful Life

The estimated period over which an asset is expected to be usable by the owner.

Straight-Line Method

A depreciation method where an asset's cost is evenly spread across its useful life, resulting in equal depreciation expenses each period.