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Classify the following investments into the following classifications: trading, held-to-maturity, available-for-sale, no significant influence, significant influence, controlling interest (each is used only once) (6pts) a.
- Classify the following investments into the following classifications: trading, held-to-maturity, available-for-sale, no significant influence, significant influence, controlling interest (each is used only once) (6pts)
a. Banana Split Co. bought 24% of Cherry-on-Top stock and are considered affiliated companies. b. Hero Company owns a Baymax Corp. 8% bond that it plans to hold till it matures in 10 years. c. Tilly Inc. buys 12% of Schwartz Corp. stock and cannot influence Schwartzs decisions. d. Hopper Co. has a GE Corp. 5% 20-year bond that they plan to sell next month for a profit. e. Sunshine Inc. owns a 10% Daybreak Corp. 7-year bond that it plans to hold till the end of this year. f. Juliet Inc. owns 55% of Romeo Company.
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