for puja 500922

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