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V. Intercompany Investments (5 points) Suppose that everything else was identical on WWE's balance sheet and income statement except that, during 2019, WWE used $10

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V. Intercompany Investments (5 points) Suppose that everything else was identical on WWE's balance sheet and income statement except that, during 2019, WWE used $10 of cash to purchase US Treasury securities. Assume that, at year-end 2019, the fair value of those securities was $13, During 2020, they sold the securities for $11 of cash. Relative to not having purchased the securities, what would the total effect (direction and amount) of having purchased the securities be on total assets and pretax income assuming the securities were Trading Securities, Securities Available for Sale Debt or Debt Held to Maturity? Note that the balance sheet accounts cumulate over time. There would also be interest payments and taxes, but you may ignore those. If the marketable securities were classified as Trading Securities 2019 Total Assets: Pretax Income: 2020 Total Assets: Pretax Income: If the marketable securities were classified as Securities Available for Sale 2019 Total Assets: Pretax Income: 2020 Total Assets: Pretax Income: If the marketable securities were classified as Held-to-Maturity Securities (2019 only) 2019 Total Assets: Pretax Income

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