On July 2, 2006, Wynn, Inc., purchased as a short-term investment a $1,000,000 face value Kean Co. 8% bond for $910,000 plus accrued interest to yield 10%. The bonds mature on January 1, 2013, pay interest annually on January 1, and are classified as trading securities. On December 31, 2006, the bonds had a market value of $945,000. On February 13, 2007, Wynn sold the bonds for $920,000. In its December 31, 2006 balance sheet, what amount should Wynn report for short-term investments in trading debt securities?
- $910,000
- $920,000
- $945,000
- $950,000