Victoria Company has bothf'curren^a^^fioncurreiTjjequity securities portfo¬ lios. All of the equity securitiesTTave readily determinable fair values. Those equit^securities in the current portfolio are considered trading securities At the ^eginnmgA)f the year, the market value of each security exceeded cost.

During the year, some of the securities increased in value. These securities^ (some in the current portfolio and some in the long-term portfolio) werejsold^ At the end of the year, the marketQalud^f each of the remaining securities was less than~original cost.

Victoria also has investments in long-term bonds, which the company intends to hold to maturity. All oLthedionds were (purchased at face value? During the year some"' of thesd^bonds were callecT)by the issuer prior to maturity. In each case the call price wasTn excess~of par value. Three months before the end of the year, additional similar^on^TlV^Tv^urchaseaXor face value plus two months' accrued interest. ’. - —"

Required:

a. How should Victoria account for the sale of the securities from each port¬ folio? Why?

b. How should Victoria account for the marketable equity securities portfo¬ lios at year-end? Why?

c. How should Victoria account for the disposition prior to their maturity of the long-term bonds called by their issuer? Why?

d. How should Victoria report the purchase of the additional similar bonds at the date of acquisition? Why?