Required1. a. Explain how Houston reports the income statement effects of the ca

Required1. a. Explain how Houston reports the income statement effects of the cash dividends received during the year on the securities in the available-for-sale portfolio.b. Explain how Houston reports the income statement effects of the securities sold during the year.2. Explain how Houston reports the effect of ownership of the portfolio of securities available for sale in its balance sheet as of the end of the year and on its income statement for the year. Do not discuss the cash dividends or the securities sold.3. Identify the method of accounting that Houston uses for its 40% investment in the outstanding voting stock of Joy. Why is this method appropriate?