1.		Sheffield holds bonds issued by Dorsel Corp. The bonds have an amortized cost of $322,000 and their fair value at December 31, 2017, is $409,000. Sheffield intends to hold the bonds until they mature on December 31, 2025.
2.		Sheffield has invested idle cash in the equity securities of several publicly traded companies. Sheffield intends to sell these securities during the first quarter of 2018, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $795,000 and a fair value of $930,000 at December 31, 2017.
3.		Sheffield has a significant ownership stake in one of the companies that supplies Sheffield with various components Sheffield uses in its products. Sheffield owns 6% of the common stock of the supplier, does not have any representation on the supplier's board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier's operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,210,000 and the fair value of the investment at December 31, 2017, is $1,558,000. Sheffield does not intend to sell the investment in the foreseeable future. The supplier reported net income of $78,000 for 2017 and paid no dividends.
4.		Sheffield owns some common stock of Forter Corp. The cost basis of the investment in Forter is $203,000 and the fair value at December 31, 2017, is $57,000. Sheffield believes the decline in the value of its investment in Forter is permanent and therefore impaired, but Sheffield does not intend to sell its investment in Forter in the foreseeable future.
5.		Sheffield purchased 25% of the stock of Slobbaer Co. for $902,000. Sheffield has significant influence over the operating activities of Slobbaer Co. During 2017, Slobbaer Co. reported net income of $298,000 and paid a dividend of $118,000.

Determine how each of the investments described above should be classified and accounted far.

1.		Sheffield holds bonds issued by Dorsel Corp. The bonds have an amortized cost of $322,000 and their fair value at December 31, 2017, is $409,000. Sheffield intends to hold the bonds until they mature on December 31, 2025.
2.		Sheffield has invested idle cash in the equity securities of several publicly traded companies. Sheffield intends to sell these securities during the first quarter of 2018, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $795,000 and a fair value of $930,000 at December 31, 2017.
3.		Sheffield has a significant ownership stake in one of the companies that supplies Sheffield with various components Sheffield uses in its products. Sheffield owns 6% of the common stock of the supplier, does not have any representation on the supplier's board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier's operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,210,000 and the fair value of the investment at December 31, 2017, is $1,558,000. Sheffield does not intend to sell the investment in the foreseeable future. The supplier reported net income of $78,000 for 2017 and paid no dividends.
4.		Sheffield owns some common stock of Forter Corp. The cost basis of the investment in Forter is $203,000 and the fair value at December 31, 2017, is $57,000. Sheffield believes the decline in the value of its investment in Forter is permanent and therefore impaired, but Sheffield does not intend to sell its investment in Forter in the foreseeable future.
5.		Sheffield purchased 25% of the stock of Slobbaer Co. for $902,000. Sheffield has significant influence over the operating activities of Slobbaer Co. During 2017, Slobbaer Co. reported net income of $298,000 and paid a dividend of $118,000.

1. Shef eld holds bonds issued by Dorsel Corp The bonds have an an mature on December 31, 2025 toed a si 2 o an te he veur a inkri wiw in m i en uhe d e e d i acquire seasonal inventory. These equity secunities have a cost basis of $795,000 and a fair value of $93o,000 at December 31, 2017 3. Sheffield has a significant ownership stake in one of the companies that supplies Sheffieid with vanious components Sheffield uses in its products. Shefield owns 6% of the common stock of the nel with the supplier, and does not consult with the supplier on any of the supplier's supplier, does not have any representation on the supplier's board of directors, does not exchange any personn operating, financial, or strategic decisions. The cost basis of the investm does not intend to sell the investment in the foreseeable future. The supplier reported net income of $78,000 for 2017 and paid no dividends ent in the supplier is $1,210,000 and the fair value of the investment at December 31, 2017, is $1,558,000. Sheffieid sis of the investment in Forter is $203,000 and the fair value at December 31, 2017, is $57,000. Sheffield believes the decline in 4. She red, but Sheffieid does not intend to sel its investment in Forter in the the value of its investment in Forter is permanent and therefore impai of $298,000 and paid a dividend of $118,000. influence over the operating activities of Slobbaer Co. During 2017, Slobbaer Co. reported net income Determine how each of the investments described above should be classified and accounted far 1. Sheffieid 2. Sheffield has invested idie cash in the equity securities of several publicly traded companies. Sheffield intends 3. holds bonds issued by Dorsel Corp. Th hold the bonds until they mature on December 31, 2025 e bonds have an amortized cost of $322,000 and their fair value at December 31, 2017, is $409,000. Sheffield intends to to sell these securities during the first quarter of 2018, when a fair value of $930,000 at December 31, 2017 it will need the cash to acquire seasonal in ventory. These equity securities have a cost basis of $795,000 and Shefield has a significant ownership stake in one of the companies that supplies Sheffeld with various components common stock of the supplier, does not have any representation on the supplier's board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier's operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,210,000 and the fair value of the investment at December 31, 2017, is $1,558,000. Shefield does not intend to sell the investment in the foreseeable future. The supplier rmported net income of 578,000 for 2017 and paid no dividends Shemeld uses its products. Shemeid owns 6% of the 4. Sheffield owns some common stock of Forter Corp. The cost basis of the investment in Forter is $203,000 and the fair value at December 3j, 2017, is $57,000. Shemeld believes the decline in the value of its investment in Forter is permanent and therefore impaired, but Sheffield does not intend to sell its investment in Forter in the foreseeable future. s. Shemeid purchased 25% of th, Stock of Slobbaer Co. ror SS02,000. Shemeld has signreant innuera o r th, aperating actites es otearea, ang ton sahher Co. reported net income of $298,000 and paid a dividend of $118,000 As Rights Reserved A Divisien ar