John Corporation has three investments that are classified as noncontrolling.

1.A bond investment, purchased on Jan 1, 2014 and maturing on Dec. 31, 2020. These bonds were purchased to help out the issuing company and because the interest income was quite high.

2. An investment in Mark Company stock, purchased on Dec. 1, 2014 because the price was low and John Corp. had some excess cash to invest. John Corporation's investment manager did not like taking risk or playing the market on an active basis.

3. An investment in 25% of the stock of Smith Company, a new customer who was experiencing management difficulties that affected their profitability. John Corp. intended to keep this investment for as long as it took to stabilize the company.

Answer the following questions about these investments.

Question 13

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The investment in bonds should be classified as:

Select one:

a. trading securities

b. available-for-sale securities

c. significant influence securities

d. held-to-maturity securities

Question 14

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The investment in Mark Company stock should be classified as:

Select one:

a. trading securities

b. available-for-sale securities

c. significant influence securities

d. held-to-maturity securities

Question 15

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The investment in Smith Company stock should be classified as:

Select one:

a. trading securities

b. available-for-sale securities

c. significant influence securities

d. held-to-maturity securities

Question 16

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Under which method would John account for their Investment in Bonds after purchase?

Select one:

a. Cost or amortized cost

b. Fair Value Method

c. Equity Method

Question 17

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Under which method would John account for their Investment in Mark Co. stock after purchase?

Select one:

a. Cost or amortized cost

b. Fair Value Method

c. Equity Method

Question 18

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Under which method would John account for their Investment in Smith Co. stock after purchase?

Select one:

a. Cost or amortized cost

b. Fair Value Method

c. Equity Method