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Use the table below to classify the following items which is part of the assets of ABC, Inc.. A. Held-to-maturity investment D. Significant influence investment
Use the table below to classify the following items which is part of the assets of ABC, Inc..
A. Held-to-maturity investment
| D. Significant influence investment
|
B. Available-for-sale investment
| E. Control investment
|
C. Trading investment
| F. Joint venture
|
- The company purchased a Sixty-day Treasury bill (T-bill).
- ABC owns 45% of TDJ Corporation. The other 55% of TDJ is owned by 100,000 different investors.
- Purchased an investment in Nortel common shares bought with idle cash in expectation that the price per share will rise.
- Owns 50% of Hydro Inc, a water bottle manufacturer. The other 50% is owned by a hedge fund.
- Owns Kelloggs Bonds, which pays 5% interest and it will mature in 10Years.
- Owns some IBM preferred shares. The shares are not intended to be sold for profit.
- Owns 30% of MKA, a sport goods manufacturer. An ABC senior manager is part of the board of directors of MKA.
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