Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies on May 5, 2015. This investment will be classified as a(n):

Question

Quizplus · Accepted Answer

According to the information given, Beige Corporation acquires 40% of the equity securities of Olive Technologies, indicating a significant interest in the company. As a result, this investment should be classified as a significant interest investment.

Beige Corporation Pays $500,000 to Acquire 40% of the Equity