Eastern Corporation, the investment banking company, often has extra cash to Invest Suppose Eastern buys 600 shares of Eathen, Inc., stock at $42 per share. Assume Eastern expects to hold the Eathen stock for one month and then sell It. The purchase occurs or December 15, 2016. At December 31. the market price of a share of Eathen stock is $58 per share. Requirements 1. What type of investment is this to Eastern? Give the reason for your answer. 2. Record Eastern's purchase of the Eathen stock on December 15 and the adjustment to market value on December 31. 3. Show how Eastern 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, 2016 4. Suppose Eastern did not intend to treat the Eathen stock as a trading security, but still intended to treat it as a short-term investment How do your answers for parts 1-3 charge? Requirement 1. What type of Investment is this to Eastern? Give the reason for your answer. Eastern's investment is because the company intends for your answer. Talbot Company purchases inventory from Happy Pool Supplies on June 1. The sales terms on the invoice from Happy Pool Supplies are 2/20, net 30. What does this mean? What is Talbot's potential savings, if any? How much time does the company have to take advantage of these savings? 2/20, n/30 means that Talbot Company will get a of the invoice date;otherwise, the full amount is due The potential savings resulting from taking advantage of the discount will be of the original invoice price. Talbot will need to pay the invoice within days of the original invoice date in order to take advantage of these savings