Question

What does amortized cost mean? When are stocks accounted for under the equity method? Complete this...

What does amortized cost mean?

When are stocks accounted for under the equity method?

Complete this table.  Answer Yes/No in each of the 7 boxes.  Partial credit if more than 4 correct boxes.

Classifications/Methods

Can apply to stocks?

Can apply to bonds?

Trading Securities

Available for sale

No. This rule just changed.

Held to Maturity

Equity Method

Which of the above classifications in 4 is accounted for using “amortized cost”?

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