Question: On January 1 , 2 0 2 3 , Ridge Road Company acquired 2 5 percent of the voting shares of Sauk Trail, Incorporated, for

On January

1, 2023,

Ridge Road Company acquired

25

percent of the voting shares of Sauk Trail, Incorporated, for $

3, 900, 000

in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail

s board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail

s board, which gave it the ability to significantly influence Sauk Trail

s operating and investing activities.

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