ACCT 551 help A Guide to career/Snaptutorial ACCT 551 help A Guide to career/Snaptutorial | Page 8

E 17-1, E17-2, E17-9, E17-12, E17-16
E17-1 (Investment Classifications) For the following investments,
identify whether they are:
·1. Trading
·2. Available-for-Sale
·3. Held-to-Maturity
Each case is independent of the other.
·(a) A bond that will mature in 4 years was bought 1 month ago when
the price dropped. As soon as the value increases, which is expected
next month, it will be sold.
·(b) 10% of the outstanding stock of Farm-Co was purchased. The
company is planning on eventually getting a total of 30% of its
outstanding stock.
·(c) 10-year bonds were purchased this year. The bonds mature at the
first of next year.