Question: Use the table below to classify the following items which is part of the assets of ABC, Inc.. A. Held-to-maturity investment D. Significant influence investment

Use the table below to classify the following items which is part of the assets of ABC, Inc..

A. Held-to-maturity investment

D. Significant influence investment

B. Available-for-sale investment

E. Control investment

C. Trading investment

F. Joint venture

  1. The company purchased a Sixty-day Treasury bill (T-bill).
  2. ABC owns 45% of TDJ Corporation. The other 55% of TDJ is owned by 100,000 different investors.
  3. Purchased an investment in Nortel common shares bought with idle cash in expectation that the price per share will rise.
  4. Owns 50% of Hydro Inc, a water bottle manufacturer. The other 50% is owned by a hedge fund.
  5. Owns Kelloggs Bonds, which pays 5% interest and it will mature in 10Years.
  6. Owns some IBM preferred shares. The shares are not intended to be sold for profit.
  7. Owns 30% of MKA, a sport goods manufacturer. An ABC senior manager is part of the board of directors of MKA.

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