Accounting/Finance?

Question

How does the information provided below, affects the classification, carrying value, and income reported for that company’s investment securities?

a. An available-for-sale marketable equity security, whose market value is currently less than cost, is classified as noncurrent but is to be reclassified as current.

b. A noncurrent portfolio of available-for-sale equity securities with an aggregate market value in excess of cost; including one particular security whose market value has declined to less than one-half of the original cost.

c. The balance sheet of a company does not classify assets and liabilities as current or noncurrent. The portfolio of available-for-sale equity securities normally considered current that have a net cost in excess of market value of $2,000. The remainder of the portfolio has a net market in excess of cost of $5,000.

Answer 1

Read the book.