Victoria Company has both current and noncurrent equity securities portfolios. All of the equity securities have readily

Question:

Victoria Company has both current and noncurrent equity securities portfolios. All of the equity securities have readily determinable fair values. Equity securities in the current are considered trading securities. At the beginning of the year, the market value of each security exceeded cost.
During the year, some of the securities increased in value. These securities (some in the current and some in the long- term were sold. At the end of the year, the market value of each of the remaining securities was less than original cost. Victoria also has investments in long- term bonds, which the company in-tends to hold to All of the bonds were purchased at During the year, some of these bonds were called by the issuer before In each case, the call price was in excess of par value. Three months before the end of the year, additional similar bonds were purchased for plus two months’ accrued interest.

Required:
a. How should Victoria account for the sale of the securities from each Why?
b. How should Victoria account for the marketable equity securities portfolios at year- end? Why?
c. How should Victoria account for the disposition before their of the long- term bonds called by their issuer? Why?
d. How should Victoria report the purchase of the additional similar bonds at the date of acquisition? Why? Face Value
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