Anzelmo Corporation Invested in Jones Manufacturing by Purchasing a 10

question 19

Multiple Choice

Anzelmo Corporation invested in Jones Manufacturing by purchasing a 10% interest in the company. Anzelmo had no significant influence in Jones. Over time, Anzelmo acquired more shares in Jones, and in 2019, Anzelmo's president became a member of the board of directors when its ownership interest reached 30% of Jones. This change is ________.

• A) an accounting principle change requiring retrospective adjustment
• B) an accounting principle change requiring prospective adjustment
• C) a correction of an error
• D) a change in estimate

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Definitions:

Ounces

A measure of mass in the avoirdupois system, equivalent to 1/16th of a pound or about 28.35 grams.

Square Feet

A unit of area measurement equal to a square measuring one foot on each side.

Oil Painting

A technique of painting with pigments that are bound with a medium of drying oil, often linseed oil, which creates a lustrous texture and depth of color.

Art Student

An individual engaged in the study of art, typically at a college, university, or specialized art school.