Northern's investment is (an-available-for-sale security/a trading security) because the company intends to sell the stock (after one year/within a short time)

This is (an available-for-sale/a held to maturity) security because it is not a trading security.

Northern Corporation, the investment banking company, often has extra cash to invest. Suppose Northern buys 600 shares of Hope, Inc., stock at $32 per share. Assume Northern expects to hold the Hope stock for one month and then sell it. The purchase occurs on December 15, 2014. At December 31, the market price of a share of Hope stock is $68 per share Requirements 1. What type of investment is this to Northern? Give the reason for your answer. 2. Record Northern's purchase of the Hope stock on December 15 and the adjustment to market value on December 31 3. Show how Northern 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, 2014 Suppose Northern did not intend to treat the Hope stock as a trading security, but still intended to treat it as a short-term investment. How do your answers for parts 1-3 change? 4