
Concept Introduction:
Trading Investments –
Trading securities refer to those securities which are held for trading purposes. In other words we can say that investments in debt or equity securities to actively trade for profit in the short-period of time, are known as trading securities.
Classification of Investments –
Investment should be classified between current and non-current assets on the basis of motive of investment. Some securities may be purchased for trading purpose or for held-to-maturity, so disclosure of each types of securities will be different.
Requirement 1
To prepare:
Requirement 2;
Classification of stock investment in the
Requirement 3
Effect on net income for the year ended December 31, 2016.

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Chapter 15 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
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