The Fish Corporation has purchased two different types of securities for its portfolio.
- The first is a stock investment in Carroll Corporation. The Fish Corporation has the intent of holding this investment for many years.
- The other investment is a debt security investment. This purchase was made because the company s analyst believes there will be changes in market interest rate and this will cause these securities to increase in value in a short period of time.
The Fish Corporation has every intention of selling the securities as soon as they have increased in value.
Write a memo to the chief financial officer explaining:
- how to account for each of these investments.
- how the reported income from these two investments is to be accounted for.
- Include additional cited research
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Grading Criteria |
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25% |
how to account for each of these investments |
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25% |
how the reported income from these two investments is to be accounted for |
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30% |
Additional research supporting the initial answer to the IP by using references which are cited in the IP |
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20% |
Justified ideas and responses by using appropriate examples or personal experience. |