7. Nichols Enterprises has an investment in 34,500 bonds of Elliott Electronics that Nichols accounts...
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7. Nichols Enterprises has an investment in 34,500 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 $14 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $22 per bond. Nichols should carry the Elliott investment on its balance sheet at:
Multiple Choice $759,000. Either $483,000 or $759,000, as either are defensible valuations. $483,000. $621,000, the midpoint of Nichols' range of reasonably likely valuations of Elliott.
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