Research Case 12-1 (Static) Classification and accounting for unrealized losses of held-to-maturity, trading, and available-for-sale investments; financial statement effects [LO12-2, 12-3, 12-4] Imani West, CEO of West Industries, stopped by the company's finance department with a question. "I am considering having West Industries purchase bonds of Triton Corporation as an investment. Our auditor told me that ordinary changes in the market value of this investment may or may not affect our net income, depending how the investment is classified. I don't like going into oudit meetings unprepared. I need to know what determines how a bond is treated so I can make sure this investment doesn't produce some income effect that surprises our shareholders. Can you give me the specific standards that apply?" Access the FASB Accounting Standords Codification at the FASB website (uww fasb.org). Determine the specific nine-digit Codification citation ( XXXXXXXXX) that indicates the outhoritative support in the Codification for each of the following aspects relevant to West's request. If a citotion uses letters to indicote sub-paragraphs (e.g- XXX-XX-XX-05b). Include the letter in the citation. Required: 1. What Codification citation indicates the criteria for determining whether a debt investment is classifled as heid-to-maturity? 2. What Codification citation indicates how unrealized gains or losses from changes in fair value affect net income when investments are classified as held-to-maturity? 3. What Codification citation indicates the criteria for determining whether a debt investment is classified I6 a trading security? 4. What Codification citation indicates how unrealized gains or losses from changes in fair volue affect net income when investments are classified as a trading security? 5. What Codification citation indicates the criteria for determining whether a debt investment is classified as avallable-for-sale? 6. What Codification citation indicates how unrealized gains or losses from changes in fair value affect net income when investments are classified os avallable-for-sale? 1. What Codification citation indicates the criteria for determining whether a debt investment is classified as held-to-maturity? 2. What Codification citation' indicates how unrealized gains or losses from changes in fair value affect net income when investments are classified as held-to-maturity? 3. What Codification citation indicates the criteria for determining whether a debt investment is classified as a trading security? 4. What Codification citation indicates how unrealized gains or losses from changes in fair value affect net income when investments are classified as a trading security? 5. What Codification citation indicates the criteria for determining whether a debt investment is classifled as available-for-sale? 6. What Codification citation indicates how unrealized gains or losses from changes in fair value affect net income when investments are classified as available-for-sale
