Chapter 12, Problem 12.6BYP

1.

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

To Classify: The income securities reported on the balance sheet of Company M.

2.

To determine

To Explain: how the unrealized gains and losses and realized gains and losses of Company M recorded.

3.

To determine

To Identify: The investments reported by the equity method.

4.

To determine

To Identify: The amount from equity method, reported in the comparative income statement.

5.

To determine

To Identify: The effect of cash flow from investments reflected in the comparative statement of cash flows.