) Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has...

) Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided that the securities will not be sold immediately, but will be held for at least three years. This will allow MW to maximize the potential gains from holding the securities. The new accountant at the company wants to classify the securities as held-to-maturity because they will be held for three years; the company has never held securities for this long before. How would you advise the management of the company to classify the securities? At the end of each reporting year, how will the securities be recognized on the company’s books? Support your response with an appropriate ASC reference (ASC xxx-xx-xx-x) or ASU (accounting standard update).

b) Cryptocurrency and Initial Coin Offering are unique investing tools. How does the SEC view these two instruments? Use the SEC’s website to find relevant information about the SEC’s stance on these instruments. Support your discussion with relevant citations from the SEC.

Solutions

Expert Solution

Sorry due to techinal error unable to load correct answer, I will upload correct today. Please wait. Sorry of that.

ekkarill92 answered 4 months ago

Next > < Previous

Related Solutions

a) Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has...

a) Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided that the securities will not be sold immediately, but will be held for at least three years. This will allow MW to maximize the potential gains from holding the securities. The new accountant at the company wants to classify the securities as held-to-maturity because they will be held for three years; the company has never held securities for this long before. How would...

Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided...

Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided that the securities will not be sold immediately, but will be held for at least three years. This will allow MW to maximize the potential gains from holding the securities. The new accountant at the company wants to classify the securities as held-to-maturity because they will be held for three years; the company has never held securities for this long before. How would you...

On July 1, 2018, The Shepard Company purchased the following securities: 500 debentures (6% interest) of...

On July 1, 2018, The Shepard Company purchased the following securities: 500 debentures (6% interest) of Tatum Incorporated for $520,200 690 common shares of Cook Ltd. for $167,400 4,000 common shares of Green Co. for $504,900 850 preferred shares of Frisbee Corp. for $76,500 2,000 common shares of Kelly, Inc. for $212,700 Shepard acquired 5% of Kelly’s outstanding shares, 10% of Frisbee’s preferred stock, and 8% of Cook’s common stock. Shepard’s investment in Tatum’s securities will mature in nine years....

3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities...

3. Counting Services Inc. has the following portfolio of trading equity securities at 12/31/18. All securities were purchased during 2018. Symbol # shares Total Cost Market Value AAPL 1000 $105,000 $125 BMX 2000 $47,000 $51 CAT 1000 $100,000 $105 GNC 3000 $64,000 $21 Total $316,000 Prepare the adjustment necessary at 12/31/18. On February 12, 2019, Counting Services sells 1,000 shares of AAPL for $125,000. Prepare the journal entry. The total cost of the three remaining securities is $211,000 and the...

Counting Services Inc. has the following portfolio of trading equity securities at 12/31/17. All securities were...

Counting Services Inc. has the following portfolio of trading equity securities at 12/31/17. All securities were purchased during 2017. Symbol # shares Total Cost Market Value AAPL 1000 $102,000 $107,000 BMX 2000 $47,000 $41,000 GNC 3000 $64,000 $87,000 Total $213,000 • Prepare the adjustment necessary at 12/31/17. • On February 12, 2018, Counting Services sells 1,000 shares of AAPL for $115,000. Prepare the journal entry. • The total cost of the two remaining securities is $111,000 and the market value...

During 2020, Financial Holdings, a public company, purchased equity securities for trading purposes. At December 31,...

During 2020, Financial Holdings, a public company, purchased equity securities for trading purposes. At December 31, 2020, the securities for Financial Holdings were as follows: Security Quantity Cost Market Value Sabo common shares 1,000 $20,000 $18,500 PYK $1.50 preferred shares 2,000 34,000 34,500 Total $54,000 $53,000 The following transactions with respect to Financial Holdings’ investments occurred during 2021: Jan. 15 Purchased 1,500 common shares of Hazmi for $20.00 per share. The shares are designated as fair value through other comprehensive...

wells fargo Equity Research 1. what is wells fargo industry overview 2. what is wells fargo...

wells fargo Equity Research 1. what is wells fargo industry overview 2. what is wells fargo competitive positioning

Crane Company purchased equipment on March 27, 2018, at a cost of $228,000. Management is contemplating...

Crane Company purchased equipment on March 27, 2018, at a cost of $228,000. Management is contemplating the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $4,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some...

Crane Company purchased equipment on March 27, 2018, at a cost of $284,000. Management is contemplating...

Crane Company purchased equipment on March 27, 2018, at a cost of $284,000. Management is contemplating the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $4,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some...

Johnson Inc. had the following transactions for January: 1. Purchased marketable securities in Smith Company for...

Johnson Inc. had the following transactions for January: 1. Purchased marketable securities in Smith Company for $100,000 cash. 2. Purchased 1,000 shares of Parker Co. for $55,000 as a long term investment. Parker has 10,000 outstanding shares issued and outstanding). 3. Purchased 10,000 shares of Drew Co. for $176,000 as a long term investment. Drew had 40,000 shares issued and outstanding. Johnson Inc. received the following dividends: 4. $1.50 per share from Parker Co. 5. $3.00 per share from Drew Co....

Subjects