For each of the situation below, determine if the investment should be reported as a passive investment

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For each of the situation below, determine if the investment should be reported as a passive investment (P), an investment reflecting influence  (SI), or a controlling interest (C).

a. ___ Griffin Company purchased 25% of the common stock of Wright, Inc., Griffin is one of several suppliers that Wright, Inc., relies on to supply subcomponents.

b. ___ Dye Corporation purchased 20% of the 2016 $40 miIlion bond issue offered by Glover Company.

c. ___ Zhao, Inc., purchased 2,000 shares of Alphabet, Inc., common stock, paying $1.1 million.

d. ___ Watts Corporation purchased 65% of the common stock of Zimmerman, Inc., common stock for cash. Watts and Zimmerman had been engaged in several strategic alliances prior to the purchase.

e. ___ Shevlin, Inc., purchased 15% o f Bowen Company's common stock. Shevlin is Bowen Company's largest customer, buying more than 60% of its output.

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Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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