Exercise #1: Blue Knight Company is planning to invest in 5-year revenue bonds issued by the county and in in stock of one of its suppliers, Sparrow Company. Sparrow's shares trade in the over the counter market. The company wants you to conduct some research on accounting for these investments. Since the Sparrow shares do not trade on one of the large markets, Blue Knight argues that the fair value is not readily available a. According to the authoritative literature, when is the fair value of a security readily available? b. How is an impairment of a security accounted for? To avoid volatility in the financials due to fair value adjustments, Blue Knight debated whether the bond investments could be classified as held to maturity. Blue Knight is pretty sure that it will hold the bonds for 5 years. c. How close to maturity could Blue Knight sell an investment and still classify it as "Held to Maturity"? d. What disclosures must be made for any sale or transfer from securities classified as "Held to Maturity