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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
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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