Chapter 13, Problem 4C

1.

To determine

Explain the way in which Company V would account for the following:

(a) Sale of securities of each portfolio

(b) Each securities portfolio at the year end

2.

To determine

Explain the way in which Company V would account for the disposition before the maturity of the long-term bonds called by their issuer.

3.

To determine

Explain the way in which Company V would report the purchase of additional bonds at the date of the acquisition.