) Maddow and Wells, Inc. purchased equity securities in 2018.The management of the company has decided that the securities willnot be sold immediately, but will be held for at least three years.This will allow MW to maximize the potential gains from holding thesecurities. The new accountant at the company wants to classify thesecurities as held-to-maturity because they will be held for threeyears; the company has never held securities for this long before.How would you advise the management of the company to classify thesecurities? At the end of each reporting year, how will thesecurities be recognized on the company’s books? Support yourresponse with an appropriate ASC reference (ASC xxx-xx-xx-x) or ASU(accounting standard update).
b) Cryptocurrency and Initial Coin Offering are unique investingtools. How does the SEC view these two instruments? Use the SEC’swebsite to find relevant information about the SEC’s stance onthese instruments. Support your discussion with relevant citationsfrom the SEC.
