CA17-1 (Issues Raised about Investment Securities) You have just started work fo

CA17-1 (Issues Raised about Investment Securities) You have just started work for Warren Co. as part of the controllers group involved in current financial reporting problems. Jane Henshaw controller for Warren is interested in your accounting background because the company has experienced a series of financial reporting surprises over the last few years. Recently the controller has learned from the companys auditors that there is authoritative literature that may apply to its investment in securities. She assumes that you are familiar with this pronouncement and asks how the following situations should be reported in the financial statements.Situation:An available-for-sale security whose fair value is currently less than cost is classified as noncurrent but is to be reclassified as current.InstructionsWhat is the effect upon carrying value and earnings for the situations above? Assume that this situationsis unrelated. (100-250 word count)