2.) Jones Company purchases 1,000 shares of Micro Corporation stock at $34 per share on July 31. The company expects to hold the stock for 6 months and then sell it. At December 31, the market price of the stock is $32 per share.

Required:

1. What type of investment is this for Jones Company? Explain your answer.

2. Prepare the necessary journal entries. Explanations are not required.

3. Discuss how Jones Company would report this investment on its balance sheet at December 31 and any gain or loss on its income statement for the year ended December 31.