Do you think companies have more incentive to report securitization as a sale or a secured borrowing for the purpose of "window-dressing" financial statements and why (4pts)? 3. 4. X transfers a marketable equity security to Y. For each of the following transfer provisions [considered independently], consider the affected requirement for transfer of financial assets. Y may not use the security as collateral for a loan. How should X account for the transfer? Why? (8pts) a. b. X attaches a call to the security, having an exercise price of $50. How should X account for the transfer if the price is highly unlikely to rise to $50? Why? (8pts)