The following investments occurred in 2013 for Mole Company. a. Mole purchased 5% of the common stock

Question:

The following investments occurred in 2013 for Mole Company.
a. Mole purchased 5% of the on Brandon Company, a business which has a history of paying large quarterly dividends. Mole wishes to hold the securities for the for seeable future in order to receive these dividends.
b. Mole purchased a bond that will mature in 10 years. Mole purchased this bond because it expects that over the next 6 months, interest rates will fall, causing the bond price to increase. At that time, Mole plans to sell the bonds to earn a profit.
c. Mole purchased $100,000 of Wilson Company's convertible bonds. Mole has no intention of converting the bonds or selling the debt in the near future.
d. Mole purchased 30% of the in a supplier in an effort to have more input into the quality of the raw materials it receives.
e. Mole purchased bonds for Collier Company with a of $100,000 for $95,000. The bonds pay interest of 8% semiannually, and Mole has the ability and intent to hold the bonds to maturity.
Required:
1. Classify each investment as either held-to-maturity, trading, available-for-sale, or an equity method investment.
2. Next Level Discuss the basis upon which the classification of each investment is based.
3. Next Level How would each of these investments be classified under IFRS?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...