Which of the following investments would most likely NOT be valued at fair value on a companys books?

strategic investments held by companies reporting under IFRS with less than 20% ownership

strategic investments held by companies reporting under IFRS with more than 20% ownership

investments held for trading

debt investment purchased to trade by companies reporting under IFRS in the short-term at gain

2)A company made an investment in ABC Bonds for the purpose of earning interest. The bonds have an amortized cost of $11,300 and are being sold before maturity for $11,900. The journal entry for the sale will include

a credit to Gain on Sale of ABC Bonds for $600.

a debit to Loss on Sale of ABC Bonds for $600.

a credit to ABC Bonds for $11,900.

a debit to Cash for $11,300.

3)

Favaro Company purchased 25% of the outstanding common shares (10,000 shares) of ABC Company for $65,000 on August 1. At December 31, Favaros year end, ABCs shares are selling for $7 and ABC reported net income of $160,000. Assuming Favaro accounts for the investment using the equity method, the adjustment to the investment account at year end would be

Debit to Investment in Associate ABC Company for $40,000.

Debit to Investment in Associate ABC Company for $160,000.

Debit to Investment in Associate ABC Company for $5,000.

Debit to Investment in Associate ABC Company for $17,500.

4)

Short- or long-term debt instruments held for trading are recorded as

non-current assets at fair value.

current assets at amortized cost.

non-current assets at amortized cost.

current asset at fair value.

5)

Which of the following is a true statement about the accounting for investments held for trading under IFRS?

The investment is initially recorded at face value.

The investment is initially recorded at fair value.

Gains and losses are recorded in OCI when the market value is different from the purchase price.

The accounting for trading investments is the same as the accounting for short-term investments in debt instruments purchased to earn interest.