1-In which one of the following circumstances would an investor most likely have control of an investee? a- The investor owns more than 50% of the voting common stock of an investee. b- The investor owns 100% of the non-voting preferred stock of an investee, C- The investor owns 90% of the voting common stock of a foreign investee on which the foreign government imposes significant financial and operating restrictions, d- The investor owns 100% of the voting common stock of a domestic investee that is in bankruptcy. 2-For accounting purposes, how many levels of influence, that an investor may have over an investee, are identified? a- One, b- Two. C- Three. d-Four. 3- Which, if any, of the following grants the investor ownership rights? Bond Investment Common Stock Investment Yes a- Yes b- Yes C- No d- No No Yes No 70, 4-In the absence of other relevant factors, what minimum level of voting ownership is considered to give an investor significant influence over an investee? a- 10%. b-20%. C-50%. d- 100%. 5- On April 1, North Company issued bonds in the market. Upon issue, South Company acquired 10% of North Company's issue. On November 30, South sold the North Company bonds in the market, and the bonds were acquired by East Company. On December 31, which one of the companies, if any, is an investor? a- North Company. b- South Company. C- East Company d- None of the companies is an investor. 6-On April 1, North Company issued bonds in the market. Upon issue, South Company acquired 10% of North Company's issue. On November 30, South sold the North Company bonds in the market; the bonds were acquired by East Company. On December 31, which, if any, of the following companies is an investee? North South East Yes No No No Yes b- Yes C- No d- No Yes Yes No Yes