The following information shows Carperk Company's individual investments in securities during its current year, along with...

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The following information shows Carperk Companys individual investments in securities during its current year, along with th

Required: 1. Identify whether each investment should be classified as a short-term or long-term investment. For each in which

business accounting

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Answer 1

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Answer #1

Part 1.

a. Long term investment - Debt investments Held to maturity

b. Long term investment - Equity method investments 20%-50%

c. Long term investment - Available for sale debt securities

d. Long term investment -Available for sale debt securities

e. Short term investments - stock investments <20%

Part 2.

DATE	GENERAL JOURNAL	DR	CR

31-Dec	Fair value adjustment - Available for sale	13789
	Unrealised gain - debt		13789

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Answer 2

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