State how the investor corporation would account for the following investments. Explain your choice.
a. Purchase of $1,000,000 of bonds that management intends to hold until they mature in three years.
b. Investment in non-voting shares of a private corporation. Management hopes to sell the shares within six months.
c. Investment representing 15 percent of the voting shares of a private corporation.
One person owns the remainder.
d. Investment in 52 percent of the voting shares of a private corporation. One person owns the remaining shares.
e. Investment in 30 percent of the voting shares of a public corporation. The investor corporation is the largest single investor in the public corporation and it has five representatives on its board of directors. The board has 15 members.