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Nichols Enterprises has an investment in 31,000 bonds of Elliott Electronics that Nichols accounts for as a security available-for-sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $12 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $19 per bond. Nichols should carry the Elliott investment on its balance sheet at:

Sagot :

Answer:

the nichols should carry the elliott investment on the balance sheet is of $372,000

Explanation:

The computation is shown below;

= Number of bonds × price per bond

= 31,000 bonds × $12

= $372,000

Simply we multiply the no of bonds with the price per bond so that the correct amount could come

Hence, the nichols should carry the elliott investment on the balance sheet is of $372,000

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