What type of investment is this to summer

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Learning Objective 1: Apply GAAP for short-term investments) Summer Corporation, the investment banking company, often has extra cash to invest. Suppose Summer buys 700 shares of Musica, Inc., stock at $59 per share. Assume Summer expects to hold the Musica stock for one month and then sell it. The purchase occurs on December 15, 2012. At December 31, the market price of a share of Musica stock is $62 per share.? Requirements1. What type of investment is this to Summer? Give the reason for your answer.2. Record Summer’s purchase of the Musica stock on December 15 and the adjustment to market value on December 31.3. Show how Summer would report this investment on its balance sheet at December 31 and any gain or loss on its income statement for the year ended December 31, 2012.

Reference no: EM13865922

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