1. A company should report the marketable equity securities that it has classified as trading at: (a)...

Question:

1. A company should report the marketable equity securities that it has classified as trading at:
(a) Lower of cost or market, with holding gains and losses included in earnings.
(b) Lower of cost or market, with holding gains included in earnings only to the extent of previously recognized holding losses.
(c) Fair value, with holding gains included in earnings only to the extent of previously recognized holding losses.
(d) Fair value, with holding gains and losses included in earnings.
2. Nola Co. has a of marketable equity securities which it does not intend to sell in the near term. How should Nola classify these securities, and how should it report unrealized gains and losses from these securities?

3. Kale Co. purchased bonds at a discount on the open market as an investment and intends to hold these bonds to maturity. Kale should account for these bonds at:
(a) Cost.
(b) Amortized cost.
(c) Fair value.
(d) Lower of cost ormarket.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...