How to classify the investments for trading purpose


Response to the following problem:

Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the shares of one of its suppliers, Teton Co. Teton's shares trade on the over-the-counter market. Cascade plans to classify these investments as trading. They would like you to conduct some research on the accounting for these investments.

If possible, please give examples to better understand your response.

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Financial Accounting: How to classify the investments for trading purpose
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