Chapter 10, Problem 6RQ

To determine

Available-for-sale investments:

Available-for-sale investments (AFS) are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and they are neither referred as trading nor 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.

Where the gain or loss on disposal of Available-for-sale investments reported in the financial statements.