Chapter 10, Problem 10.12E

1.

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

To Journalize: The transaction of S Investments’ in V’s voting stock for the year 2016.

2.

To determine

To journalize: The sale of stock in investment.

3.

To determine

To identify: The account(s) and amount(s) which S Investments would report in its income statement for the year ended December 31, 2017.