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Kasey Hartman is the controller for Wholemart Company, which has numerous long - term investments in debt securities . Wholemart's investments are mainly in five
Kasey Hartman is the controller for Wholemart Company, which has numerous longterm investments in debt securities Wholemart's investments are mainly in fiveyear bonds. Hartman is preparing its yearend financial statements. In accounting for longterm debt securities she knows that each longterm investment must be designated as a heldtomaturity or an availableforsale security. Interest rates rose sharply this past year, causing the portfolio's fair value to substantially decline. The company does not intend to hold the bonds for the entire five years. Hartman also earns a bonus each year, which is computed as a percent of net income.
Question : Will Hartman's bonus depend in any way on the classification of the debt securities Explain.
Question : What criteria must Hartman use to classify the securities as heldtomaturity or availableforsale?
Question : Is there likely any company oversight of Hartman's classification of the securities Explain.
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