Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division.

From time to time the company buys and sells securities intending to earn profits on short$-$term differences in price.

The following selected transactions relate to Amalgamated$$s investment activities during the last quarter of $2016$ and the first month of $2017.$ The only securities held by Amalgamated at October $1$ were $$30$ million of $10\%$ bonds of Kansas Abstractors, Inc., purchased on May $1$ at face value. The company$$s fiscal year ends on December $31.$

$2016$

Oct. $18$ Purchased $2$ million preferred shares of Millwork Ventures Company for $$58$ million as a

speculative investment to be sold under suitable circumstances.

$31$ Received semiannual interest of $$1\mathrm{.}5$ million from the Kansas Abstractors bonds.

Nov. $1$ Purchased $10\%$ bonds of Holistic Entertainment Enterprises at their $$18$ million face value, to be held until they mature in $2018.$ Semiannual interest is payable April $30$ and October $31.$

$1$ Sold the Kansas Abstractors bonds for $$28$ million because rising interest rates are expected

to cause their fair value to continue to fall.

Dec. $1$ Purchased $12\%$ bonds of Household Plastics Corporation at their $$60$ million face value, to be held until they mature in $2028.$ Semiannual interest is payable May $31$ and November $30.$

$20$ Purchased U$.$ S$.$ Treasury bonds for $$5\mathrm{.}6$ million as trading securities$,$ hoping to earn profits

on short$-$term differences in prices.

$21$ Purchased $4$ million common shares of NXS Corporation for $$44$ million as trading securities$,$

hoping to earn profits on short$-$term differences in prices.

$23$ Sold the Treasury bonds for $$5\mathrm{.}7$ million.

$29$ Received cash dividends of $$3$ million from the Millwork Ventures Company preferred shares.

$31$ Recorded any necessary adjusting entry$($s$)$ and closing entries relating to the investments.

The market price of the Millwork Ventures Company preferred stock was $$27\mathrm{.}50$ per

share and $$11\mathrm{.}50$ per share for the NXS Corporation common. The fair values of the bond

investments were $$58\mathrm{.}7$ million for Household Plastics Corporation and $$16\mathrm{.}7$ million for

Holistic Entertainment Enterprises.

$2017$

Jan. $7$ Sold the NXS Corporation common shares for $$43$ million.

Required:

$1)$ Review IFRS vs USGAAP treatment $(7\mathrm{.}1,7\mathrm{.}3,7\mathrm{.}5,7\mathrm{.}6,7\mathrm{.}13)$

$2)$ Identify the business type $($is it Debt or Equity$)$

$3)$ Identify the business model $($is it Trade in$,$ Available for sale, $...$ etc.$)$

$4)$ Identify accounting to be used under IFRS

$5)$ Prepare the appropriate journal entry for each transaction or event.

$6)$ Identify whether the investment is in debt or equity securities