Question:Effect of various methods of accounting for marketable equity securities.

A.these securities are trading securities. what is the nature and amount of income recognized during 2013 and 2014? How do you present information about these securities on the balance sheet on December 31, 2013 and 2014.

B. Repeat part A assuming these securities are available-for-sale securities held as temporary investments of excess cash.

C. Repeat part A assuming these securities represent long-term investments held as available-for-sale securities.

D. How do you figure out the combined income for 2013 and 2014 under each of the three treatments of these securities in parts a, b, and c.

E.Why do the combined income amounts differ?

F.Does the total shareholders' equity differ? How do you know and why or why not?

Security Acquisition Cost in 2013 Dividends Received Fair Value on Selling Price in 2014 Dividends Received Fair Value on Dec. 31, 2014

During 2013 on Dec. 31, 2013 During 2014

G . . . . . . . $18,000 $ 800 $16,000 $14,500 $ 200 --

H . . . . . . . 25,000 1,500 24,000 26,000 500 --

I . . . . . . . 12,000 1,000 14,000 --------- 1,500 $17,000

$55,000 $3,300 $54,000 $40,500 $2,200 $17,000

Information related to marketable equity securities of Callahan Corporation :

A bank reports the following information relating to its marketable securities classified as available-for-sale securities for a recent year (amounts in millions of US$):

December 31

2013 2014

Marketable Securities at Acquisition Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,968 $14,075

Gross Unrealized Gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,445 957

Gross Unrealized Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (218) (510)

Marketable Securities at Fair Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,195 $14,522

Cash proceeds from sales and maturities of marketable securities totaled $37,600 million in 2014. Gross realized gains totaled $443 million, and gross realized losses totaled $113 million during 2014. The carrying value of marketable securities sold or matured totaled $37,008 million. Interest and dividend revenue during 2014 totaled $1,081 million. Purchases of marketable securities totaled $37,163 million during 2014