III. Short Exercises 1) Identify the type of investment described by the phrases below. Some of the phrases may describe more than one category of investments. (Points: 40) a. investments in farm cooperatives b. investments in entities other than farm cooperatives c. life insurance policies d. retirement accounts _Investing in savings accounts, traditional IRAS, or Roth IRAS. _Investing in an entity that might pay patronage dividends to its members. Recording the investment by debiting the Investments account. Recording the share of profit allocated to members by debiting the Investments account. Recording the dividends by crediting the Investments account. Investment with a cash surrender value. Recording changes in market value. Investing for the sole purpose of earning income or selling the investment for a profit. Recording the income from the investment by crediting Miscellaneous Revenue. Investing in marketable securities. _Investing for the purpose of protecting against the loss of key people in the business. _Investing in an entity that produces or purchases goods for its members and sells them to the members at competitive prices. 2 Purchasing the investment by becoming a member. Investments that are considered personal assets. Investments not reported on farm financial statements unless combined statements are prepared. Investing in an entity that is involved in lending to agricultural operations. Investing for the purpose of having income in later years. _Investing in an entity that sells stocks and bonds. _Investing in an entity that provides sales outlets for its members