Victoria Company has both a current and noncurrent marketable equity securities portfolio. At the beginning of the year, the aggregate market value of each portfolio exceeded its cost. During the year, Victoria sold some securities from each portfolio. At the end of the year, the aggregate cost of each portfolio exceeded its market value.

Victoria also has long-term investments in various bonds all of which were purchased for face value. During the year, some of these bonds held by Victoria were called prior to their maturity by the bond issuer. Three months before the end of the year, additional similar bonds were purchased for face value plus two months' accrued interest.

Required:

1. How should Victoria account for the sale of securities from each portfolio? And Why? (What is the justification for the recommended accounting treatment).

2. How should Victoria account for the marketable equity securities at year end? Why? (What is the justification for the recommended accounting treatment).

b. How should Victoria account for the disposition prior to their maturity of the long-term bonds called by their issuer? Why? (What justification for the recommended accounting treatment).

c. How should Victoria report the purchase of the additional similar bonds at the date of the acquisition? Why? (What is the justification for the recommended accounting treatment)