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1. 2. 3. Kroshka Holdings Corporation has several investments in the debt and equity securities of other companies: 10-year BCE bonds, purchased to eam interest

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1. 2. 3. Kroshka Holdings Corporation has several investments in the debt and equity securities of other companies: 10-year BCE bonds, purchased to eam interest 10-year GE bonds, intended to be sold if interest rates go down One-year Government of Canada bonds, purchased to earn interest 180-day treasury bill, intended to be held to earn interest. Bank of Montreal preferred shares, purchased to sell in the near term at a profit. Loblaw common shares, purchased to sell in the near term at a profit 7. 60% of the common shares of Pizzutto Holdings Corporation, a major competitor of Kroshka Holdings 22% of the common shares of Kesha Inc., one of Kroshka Holdings' suppliers. Assume Kroshka exercises significant influence over Kesha 5. 6 8 (a) (b) Indicate whether each of the above investments is a non-strategic or strategic investment. Indicate whether each of the above investments would be classified as a current asset or non-current asset in Kroshka Holdings' balance sheet. For each investment that you classified as non-strategic indicate the amount the investment will be reported at in the balance sheet assuming that Kroshka is a public company. (c) (a) (c) > 1. 10-year BCE bonds > V 2 3 10-year GE bonds One-year Government of Canada bonds 180-day treasury bill

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