Question: Johnson Engineering purchased $ 1 5 0 , 0 0 0 of the outstanding 4 0 0 , 0 0 0 shares of Harris Manufacturing.

Johnson Engineering purchased $150,000 of the outstanding 400,000 shares of Harris Manufacturing. How should Johnson account for this investment?
Johnson has control over Bear, so it must consolidate all financial statements.
Johnson should classify this investment as an equity investment with no determinable fair value.
Johnson should classify this investment as an equity investment with no significant influence.
Johnson should account for this investment using the equity method, as Johnson has significant influence over the investee.
Johnson Engineering purchased $ 1 5 0 , 0 0 0 of

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