Problem
1. What are the valuation guideline as to how trading and available-for-sale securities are reported on the balance sheet?
2. Where are unrealized gains and losses for trading and available-for-sale securities reported in the financial statements?
3. Peggy is confused as to what constitutes a current liability. What are the two features that make a liability "current"?
Adriana is studying for the next accounting examination. She asks your help on two questions:
1. What is depreciation and salvage value?
2. How is salvage value used in determining the depreciable cost under the straight-line method of depreciation?