1. J & J owns the following securities. Information relating to the below available-for-sale equity securities is presented.
J & J is concerned about meeting the annual earnings estimate. The CFO has asked you to recommend how income could be increased either by selling the investments for a profit or reclassifying them in such a way as to affect income. Give your recommendation(s) and how income would be effected (ignore tax affects).
2. How would each of the following would be accounted for on J & J Products consolidated statements?
A 15% investment in Security F
A 30% investment in Security G
A 80% investment in Security H
A 100% investment in Security I