Describe how to account for an impairment of a security

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Question

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

Incorporate your review of the FASB link to determine when the fair value of a security "readily determinable".

Describe how to account for an impairment of a security.

Determine how close to maturity Cascade could sell an investment and still classify it as held-to-maturity.

List disclosures that must be made for any sale or transfer from securities classified as held-to-maturity.

Reference no: EM132363275

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