A11-23 Reclassification: On 31 December 20X6, TKB Company's investments in equity securities were as follows: Carrying Value AOCI: Equity Reserve: Holding Gains and Losses (Cumulative) $763,500 $42,230 loss FVOCI-Equity investment Gold Corp., common shares FVTPL investment MacKinnon Corp., common shares AC investment Walsh Ltd. 7% bonds, $300,000 par value Significant-influence investment Orr Ltd. 781,300 297,000 2,394,000 Required: 1. Explain what the carrying value for each investment represents. 2. What was the original cost of the FVOCI investment? 3. TKB reclassified the AC investment to a FVTPL investment on this date, when its fair value was $316,000. Explain how the reclassification will be reflected in the financial statements. How is fair value established? 4. TKB reclassifies the Orr common shares as a FVTPL investment when the fair value is $2,519,000. What accounting is required for this reclassification? 5. What is the rule for classifications in and out of the FVOCI-Equity category