All equity securities and investments in debt securities that are intended to be sold in the near term are classified asheld-to-maturity securities.trading securities.available-for-sale securities.none of these choices. 2. Any change in the fair value of trading securities isreported on the income statement as part of net income.reported as part of other comprehensive income in the shareholders' equity section of the balance sheet.ignored; only the amortized cost is reflected in the financial statements.reported as a cash outflow in the investing activities section of the statement of cash flows. 3. A minority active investment with significant influence occurs when the investor ownsbetween 10% and 20% of the voting common stock of the investee.over 50% of the voting common stock of the investee.between 20% and 50% of the voting common stock of the investee.over 50% of the preferred stock of the investee.

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Answered: All equity securities and investments…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 8QE

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All equity securities and investments in debt securities that are intended to be sold in the near term are classified as

held-to-maturity securities.
trading securities.
available-for-sale securities.
none of these choices.

2. Any change in the fair value of trading securities is

reported on the income statement as part of net income.
reported as part of other comprehensive income in the shareholders' equity section of the balance sheet.
ignored; only the amortized cost is reflected in the financial statements.
reported as a cash outflow in the investing activities section of the statement of cash flows.

3. A minority active investment with significant influence occurs when the investor owns

between 10% and 20% of the voting common stock of the investee.
over 50% of the voting common stock of the investee.
between 20% and 50% of the voting common stock of the investee.
over 50% of the preferred stock of the investee.

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All equity securities and investments in debt securities that are intended to be sold in the near term are classified as held-to-maturity securities. trading securities. available-for-sale securities. none of these choices.