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Norris Company purchased $64,000 of marketable securities on March 1, Year 1 . On the company's fiscal year closing date, December 31 , Year 1 , the securities had a market value of $32,000. During Year 1, Norris Company recognized $25,000 of revenue and $11,500 of expenses. Required a. Using a horizontal statements model, show how the purchase of the securities affects the financial statements, assuming that the securities are classified as (1) held to maturity, (2) trading, or (3) available for sale. Record only the effects of the purchase event. b. Determine the amount of net income that would be reported on the Year 1 income statement, assuming that the marketable securities are classified as (1) held to maturity, (2) trading, or (3) available for sale. Complete this question by entering your answers in the tabs below. Using a horizontal statements model, show how the purchase of the securities affects the financial statements, assuming that the securities are classified as (1) held to available for sale. Record only the effects of the purchase event. (Select (+),(),(+/), or leave cells blank for no effect. In the Statement of Cash Flows column, indic operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an element was not affected by the event.)

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