only if the company has both: (1) the positive intent and (2) the ability to hold those securities to maturity. 6. Trading securities are reported at fair value, with unrealized holding gains and losses reported as part of net income. Any discount or premium is amortized. 7. Trading and available-for-sale securities should be reported at fair value, whereas held-to-maturity securities should be reported at amortized cost. 8. $3,500,000 X 10% = $350,000; $350,000 ÷ 2 = $175,000. Wheeler would…
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