11 . Garden Haven has excess cash of $15, 000 at the end of the harvesting season . Garden Haven will need this cash in four months for normal operations . Requirement 1 . What are some reasons; is why Garden Haven may choose to invest in debt or equity securities ? The company has seasonal excess cash not needed for normal business operations . The company wants to generate earnings from the excess cash . Requirement 2 . What type of classification would Garden Haven's investment fall within - - short - term or long-term ? Why ?* This investment would be classified as a short - term investment because Garden Haven intends to hold the investment for less than year . Accounting Methe a. Investment in 25% of the invested company's stock of which the investor has significant influence Equity b. Available - for-sale debt investment Fair value C. Investment in more than 50% of the invested company's stock Consolidation d. Bond investment that matures in four years . The investor plans to hold the bond for the full four years . Amortized cost