Awisse Telecommunications Ltd. has several investments in debt and equity securities of other companies. 1. 15% of
Question:
Awisse Telecommunications Ltd. has several investments in debt and equity securities of other companies.
1. 15% of the common shares of Lewis Telecommunications Inc., with the intent of purchasing at least 10% more of the common shares and requesting a seat on Lewis's board of directors.
2. 100% of the 15-year bonds issued by Li Internet Ltd., intended to be held for 15 years to earn interest.
3. 95% of the common shares of Barlow Internet Services Inc.
4. 120-day treasury bill.
5. 10% of the common shares of Talk to Us Ltd., to be sold if the share price increases.
Instructions
Indicate whether each of the above investments is a non-strategic or strategic investment and explain why.
Step by Step Answer:
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow