You are enjoying a very rewarding internship position with Luke and Levi Brother, Inc. You were assigned to work in the accounting department, specifically on the team that is responsible for the preparation of financial statement at year- end. Today, you encountered a very interesting situation Your immediate supervisor, Latoi Reed, and the CFO, Steven Page, are disagreeing about the accounting for the portfolio of equity and debt securities included in the company's investment portfolio For the past several years, the company has built a rather large investment portfolio of debt and equity securities. It has been determined that at year end, January 31, 2019, the cost of the total portfolio is greater than its fair value. As expected, some securities have increased in value above their original cost while others have decreased in value below their original cost. It is now time to resolve the disagreement between Reed and Page and determine how the portfolio should be reported on the December 31, 2018 balance sheet. Your supervisor, Latoi Reed, indicates that those securities that have increased in value above cost should be classified as trading securities. Alternative, she wants to classify the securities that have decreased in value as long-term available- for-sale securities. The CFO, Stephen Page, says that classifying the securities that have decreased in value as trading securities and those that have increased in value as long-term available-for-sale securities is the correct approach. Lang's argument is that since Luke and Levi Brothers is having a very good year, recognizing losses now will make income look less volatile Moreover, built- in gains will be there in the future if the company is not so profitable. You are asked to express your opinion/recommendation as to how the portfolio should be reported on the balance sheet. Both Reed and Page agree that since you are up-to-date on the latest accounting rules, you are the best person to resolve their conflict Write a letter addressed to both individuals, Latoi Reed and Stephen Page. Your letter should recommend the proper approach for reporting the portfolio on the balance sheet From an ethical standpoint, you should also express what is good and what is not good about the argument of both parties. From an accounting standpoint, you should express what I good and what is not good about the argument of both parties