An individual buys 100 shares of common stock for $8,000 in February. The value of the stock fluctuates in a narrow range (averaging $8,700) throughout the year. In November, when it has a value of $9,500, he donates it to a nonprofit entity. On December 31, the stock has a fair value of $8,200. At what amount should the nonprofit entity value the stock on its December 31 statement of financial position? See "12 Investments.pdf" for Cambridge, page 13-23 $9.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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8
An individual buys 100 shares of common stock for $8,000 in February. The value of the stock
Investments fluctuates in a narrow range (averaging $8,700) throughout the year. In November, when it
has a value of $9,500, he donates it to a nonprofit entity. On December 31, the stock has a fair
value of $8,200.
At what amount should the nonprofit entity value the stock on its December 31 statement of
financial position?
See "12 Investments.pdf" for Cambridge, page 13-23
$8,000
$8,200
$8,700
a.
b.
C.
d.
$9,500
9
The Appleseed Fund has investments resulting from contributions that are restricted in
Investments perpetuity. Given that the Fund must disclose the data used (inputs) to measure the fair value
of its investments using the FASB's three-level fair value hierarchy, in what level should the
fund report its investments in equity securities that it obtained from the December 31" Wall
Street Journal?
See "12 Investments.pdf" for Cambridge, page 13-24
a. As Level 1, consisting of equity securities traded in active markets
b. As Level 2, consisting of inputs other than quoted market prices
c. As Level 3, consisting of unobservable inputs
d.
None of these; investments in equity securities are excluded from this required.
disclosure
Transcribed Image Text:8 An individual buys 100 shares of common stock for $8,000 in February. The value of the stock Investments fluctuates in a narrow range (averaging $8,700) throughout the year. In November, when it has a value of $9,500, he donates it to a nonprofit entity. On December 31, the stock has a fair value of $8,200. At what amount should the nonprofit entity value the stock on its December 31 statement of financial position? See "12 Investments.pdf" for Cambridge, page 13-23 $8,000 $8,200 $8,700 a. b. C. d. $9,500 9 The Appleseed Fund has investments resulting from contributions that are restricted in Investments perpetuity. Given that the Fund must disclose the data used (inputs) to measure the fair value of its investments using the FASB's three-level fair value hierarchy, in what level should the fund report its investments in equity securities that it obtained from the December 31" Wall Street Journal? See "12 Investments.pdf" for Cambridge, page 13-24 a. As Level 1, consisting of equity securities traded in active markets b. As Level 2, consisting of inputs other than quoted market prices c. As Level 3, consisting of unobservable inputs d. None of these; investments in equity securities are excluded from this required. disclosure
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