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Consider the following investments. a. Bountiful gifts buys 1,000 preferred shares in another company. The shares do not have voting rights. b. Colder Company buys

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Consider the following investments. a. Bountiful gifts buys 1,000 preferred shares in another company. The shares do not have voting rights. b. Colder Company buys 500 common shares of a publicly traded company that has 200 million shares outstanding. c. Fast cars buys 800,000 common shares in Super Autos. There are 4,000,000 shares outstanding Required: Identify how the company should categorize the above items. Briefly explain the reason for the classification. (6 marks)

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