Question $3(1$ point$)$

ABC Corporation Inc. $($ABC$)$ owns $60\%$ of the voting common shares of Reich Corporation Ltd$.($RCL$),$ while TieCo owns $25\%,$ and Platinum Inc. $($PI$)$ owns the remaining $15\%.$ ABC has significant intercompany transactions with RCL$.$ TieCo and PI have no intercompany transactions with RCL$.$ ABC appoints eight of RCL$\text{'}$s $10$ board members; TieCo and PI each appoint one board member. Which of the following statements is true?

TieCo has no influence over RCL and should classify their investment in RCL as a passive investment.

ABC should classify its investment in RCL as an associate since it does not have control of RCL$.$

TieCo and PI have significant influence over RCL$.$

TieCo has significant influence over RCL$.$