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Muir,LtdMeasures Its Trading Securities at Fair Value

Question 42

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Muir,Ltd.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 on December 31.If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $400,000,what adjustment is necessary to report the value of the bonds under the fair value option.


A) Muir,Ltd.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 on December 31.If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $400,000,what adjustment is necessary to report the value of the bonds under the fair value option. A) B) C) D)
B) Muir,Ltd.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 on December 31.If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $400,000,what adjustment is necessary to report the value of the bonds under the fair value option. A) B) C) D)
C) Muir,Ltd.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 on December 31.If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $400,000,what adjustment is necessary to report the value of the bonds under the fair value option. A) B) C) D)
D) Muir,Ltd.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 on December 31.If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $400,000,what adjustment is necessary to report the value of the bonds under the fair value option. A) B) C) D)

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