Joan Steel purchases 10,000 shares of Smith Metals for $34,000 in exchange of cash and now holds 3.2% voting stock of Smith Metals. Assuming no other transaction happened during the year, the ________ in the balance sheet will increase.

Question

Quizplus · Accepted Answer

The purchase of Smith Metals shares for $34,000 represents a long-term investment, which will increase the long-term investments line item in the balance sheet.

Joan Steel Purchases 10,000 Shares of Smith Metals for $34,000