Ask Question
BusinessBusiness
16 April, 09:27

Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified?

+1
Answers (1)
  1. 16 April, 13:00
    0
    No significant interest equity investment

    Explanation:

    A technique used in accounting by a firm for the purpose of recording the profits that are obtained from its investments made on other company refers to an equity method. This investment is an equity investment. The profits that are obtained for the investments made by a firm is reported by the company to the firm that made the investment.

    In the scenario given, Intervale Railway y is considering investing in Pale Co. stock for three months which is only 5% of the voting stock of Pale Co. For considering it to be a significant investor, more than 20% and less than 50% of the voting stock must be held by the firm. The firm is holding 5% of the voting stock and hence the investment is considered to be No significant interest equity investment.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Andrew's company is a bureaucratic organization. Andrew is likely to encounter which of the following conditions? A. Real time decisions B. Cross-functional teams C. Empowerment of first-line employees to better serve customers D.
Answers (1)
Linear programming, simulation and waiting line theory are most closely associated with which era in the historical development of operations management? human relations operations research globalization Internet revolution
Answers (1)
One of the most common mistakes new business owners make is
Answers (1)
You want to travel to Europe to visit relatives when you graduate from college three years from now. The trip is expected to cost a total of $10,000.
Answers (1)
2. Why is the finance department of a company important?
Answers (1)
New Questions in Business
Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers. a. Variable b. Direct
Answers (1)
Work telephone numbers for your coworkers would most likely be found using a. directory assistance b. a company directory c. a yellow pages directory d. none of the above
Answers (1)
During January, time tickets show that the factory labor of $7,000 was used as follows: Job 1 $2,300, Job 2 $1,780, Job 3 $1,570, and general factory use $1,350. Prepare a summary journal entry to record factory labor used.
Answers (1)
One widespread trend under way in business today that will affect the goals of the organization you work for is: Select one: a. social intelligence b. new media adaptations c. an increased focus on ethical and socially responsible behavior d.
Answers (1)
A high-profile consulting company chooses its new entry-level employees from a pool of recent college graduates using a five-step interview process.
Answers (1)
Home » Business » Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified?
Sign Up Forgot Password?