Indicate (by letter) the way each of the investments listed below most likely should be accounted for

Question:

Indicate (by letter) the way each of the investments listed below most likely should be accounted for based on the information provided.

Item

1. 35% of the nonvoting preferred stock of American Aircraft Company.

2. Treasury bills to be held to maturity.

3 Two-year note receivable from affiliate.

4. Accounts receivable.

5. Treasury bond maturing in one week.

6. Common stock held in trading account for immediate resale.

7. Bonds acquired to profit from short-term differences in price.

8. 35% of the voting common stock of Computer Storage Devices Company.

9. 90% of the voting common stock of Affiliated Peripherals, Inc.

10. Corporate bonds of Primary Smelting Company to be sold if interest rates fall 1/2%.

11. 25% of the voting common stock of Smith Foundries Corporation: 51% family-owned by Smith family; fair value determinable.

12. 17% of the voting common stock of Shipping Barrels Corporation: Investor's CEO on the board of directors of Shipping Barrels Corporation.

Reporting Category

T. Trading securities

M. Securities held-to-maturity

A. Security available-for-sale

E. Equity method

C. Consolidation

N. None of these

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...