Chapter 12, Problem 12.6BYP

a)

To determine

Securities available for sale

Securities available for sale are the securities held by the companies that are not meant for active trading or held to its maturity and are typically reported at their fair values.

To Explain: The amount and classification of investment securities reported by Company M.

b)

To determine

To Explain: The accounting for the unrealized gains and loss, and realized gains and loss are reported by Company M.

c)

To determine

The investments reported by Company M, using the Equity Method.

d)

To determine

The mount from equity method investment reported in the comparative income statement by Company M.

e)

To determine

To Explain: The cash flow from which investments are reported in the comparative income statement by Company M.