cbrewer37
cbrewer37
19.09.2019 • 
Business

Presented below is selected information related to the financial instruments of crane company at december 31, 2017. this is crane company’s first year of operations. carrying amount fair value (at december 31) investment in debt securities (intent is to hold to maturity) $39,900 $40,900 investment in chen company stock 848,500 958,500 bonds payable 236,500 210,400 (a) crane elects to use the fair value option for these financial instruments (the fair value option for financial liabilities is discussed in chapter 14). assuming that crane’s net income is $109,000 in 2017 before reporting any securities gains or losses, determine crane’s net income for 2017 (assume that the difference between the carrying value and fair value is due to credit deterioration).

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