
Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are called available-for-sale securities.
Held to maturity securities: Any securities purchased with an intention of holding the investments till maturity.
Fair value: Fair value is a selling price which is agreed by the buyer and seller.
(a) To prepare: To prepare the journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities.
Given information: All the information related to W Company is provided in the question document.
(b) To explain: To explain the difference in the record of journal entries from part (a), in case W classified these as held-to-maturity investments.
Given information: All the information related to W Company is provided in the question document.

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Chapter 17 Solutions
Intermediate Accounting 16E Binder Ready Version With Wiley Plus Blackboard
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