Beige Corporation pays $500,000 to acquire 40% of the equity securities of Olive Technologies,Inc.on May 5,2017.This investment will be classified as a(n)________.

Question

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The investment in Olive Technologies, Inc. represents a significant interest, as Beige Corporation has acquired 40% of the equity securities of the company. Trading investments are typically short-term investments in securities, while held-to-maturity investments are debt securities that are intended to be held until maturity. Available-for-sale investments are all other investments that do not meet the criteria for classification as either trading or held-to-maturity.

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