For each of the following investments state what type of investment it is and how it would likely be accounted for.
A) Own 28,000 of 50,000 voting shares of a private company.
B) Bought 15,000 of 50,000 voting shares of a private company from a disgruntled partner.One person owns all the remaining shares.To date have been unable to get any representation on the board of directors.
C) Own 1,000 shares of the Toronto Dominion Bank, a large public company.Because they have a good record for dividend payments, management intends to hold the shares for a long time.
D) Own 5,000 of a public company as part of an investment portfolio managed to earn income.E) Own 33% of the shares of a private company with two other equal partners.
F) Own 20% of the shares but control 80% of the votes of a large public company.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q88: Pant Inc.owns 80% of Sockswear Co.During 2013,
Q89: An analyst is reviewing the financial statements
Q90: When considering the effects on the financial
Q91: Collis Company purchased 36,000 common shares of
Q92: Beatty Company is thinking about buying a
Q93: During 2013, Truro Company bought 5,000
Q94: During 2013, Truro Company bought 5,000
Q96: When preparing the consolidated financial statements for
Q97: Canada Company had the following activity with
Q98: Pant Inc.owns 80% of Sockswear Co.During 2014,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents