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Investments of less than 20% purchased for the sole purpose of quickly making a profit 1. Would be accounted for using the cost method II.

Investments of less than 20% purchased for the sole purpose of quickly making a profit 1. Would be accounted for using the cost method II. Would be recorded as a current liability on the balance sheet III. Would be recorded as a current asset on the balance sheet IV. Would be accounted for using the equity method A) I, III B C I, II, III II, III, IV D)

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