Stock Trader,Inc.began operations in 2012.Stock Trader has acquired a number of equity investments during 2012.None have been sold.Stock Trader exerts no influence over any of its investments each of which represents a small percentage of the investee.An analysis of Stock Trader's investment portfolios shows the following totals at December 31,2012:
Based on the information provided,describe how Stock Trader would present this information in its financial statements.You should discuss what amounts would appear in each financial statement.
Definitions:
Non-Cancelable
A term used in contracts and agreements indicating that the contract cannot be canceled or terminated by the parties involved without consequences.
Nonrenewable
Resources or energy sources that cannot be readily replaced by natural means at a pace quick enough to keep up with consumption.
Implicit Rate
The interest rate inherent in a lease, not explicitly stated, used to determine lease payments.
Incremental Borrowing Rate
The incremental borrowing rate is the interest rate a company would have to pay if it borrows additional funds.
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