Classification of Investments to Determine Accounting Treatment Available for Held to Significant Controlling Trading Sale Maturity Influence Influence Debt / Type: Debt/Equity Debt Equity Equity Equity Short/Long Short/Long Holding Period: Short Term Long Term Long Term Term Term Ownership %or Actively To Yield Hold to 20% to 50% More than 50% Intention Trade Income Maturity Accounting Treatment - See text book for more detail. Trading: Fair Value (with fair value adjustment to income). Held to Maturity: Cost (without any discount or premium amortization). Available for Sale: Fair Value (with fair value adjustment to equity). Significant Influence: Equity Method. Controlling Influence: Equity Method (with consolidation). NOTE: If there is a tie between Ownership and Intention when classifying an investment, Ownership % wins. Discuss the following questions: 1. Prepare the Journal Entry in good form (account being credited must be indented) for the receipt of $500 cash dividends for each class of the equity securities below: Trading and Available for sale (same) Significant influence and Controlling interest (same)