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ents as Passive, Significant, or Controlling Autos Unlimited Inc., a large auto manufacturer, is considering an investment in one of its suppliers. For each
ents as Passive, Significant, or Controlling Autos Unlimited Inc., a large auto manufacturer, is considering an investment in one of its suppliers. For each of the separate situations below, determine if the investment by the auto manufacturer should be reported as a passive investment (P), an investment reflecting significant influence (5), or a controlling interest (C) S Autos Unlimited purchases $500,000 of bonds issued by its supplier Autos Unlimited purchases $5 million of bonds issued by its supplier Autos Unlimited purchases common stock of its supplier representing 67% of the outstanding common stock of the supplier. Autos Unlimited purchases common stock of its supplier representing 45% of the outstanding common stock of the supper Autos Unlimited purchases common stock of as supplier representing 10% of the outstanding common stock of the suppler
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