A private, not-for-profit hospital adopted SFAS 124, Accounting for Certain Investments Held by Not-for-Profit Organizations. For the year ended December 31, 2005, how should the hospital report its investments in debt securities that are classified as current assets and noncurrent assets on its statement of financial position (balance sheet)?

Debt securities in current assets

Debt securities in noncurrent assets

a.

Fair value

Amortized cost

b.

Amortized cost

Fair value

c.

Fair value

Fair value

d.

Amortized cost

Amortized cost