Muir,ladMeasures Its Trading Securities at Fair Value

Muir,lad.measures its trading securities at fair value.It has liabilities that it also measures using the fair value option.Muir has bonds outstanding (originally sold for $2,400,000) in the amount of $2,000,000 with a current bond premium of $340,000.The bonds were selling at 101 on the market at its year end.At what value should it report these bonds on its balance sheet at year end?

A) $2,000,000
B) $2,200,000
C) $2,340,000
D) $2,400,000

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