ABC Inc Purchased Shares of DEF Inc as Follows

question 116

Multiple Choice

ABC Inc purchased shares of DEF Inc as follows:

June 30^th, 2013 4,000 shares @ $3 per share $12,000
June 30^th, 2014 3,000 shares @ $4 per share $12,000
June 30^th, 2015 3,000 shares @ $6 per share $18,000

The shares are considered to be passive investments. ABC Inc. has a December 31^st, year-end.
The market value of the DEF shares at each year-end was as follows:
December 31^st, 2013 $3.50 per share
December 31^st, 2014 $5.00 per share
December 31^st, 2015 $5.50 per share
On July 1^st, 2015, ABC sold half its shares in DEF Inc. for $6.50 per share.

-When a company holds between 20% and 50% of the outstanding shares of an investee, which of the following statements applies:

• A) The investor should always use the equity method to account for its investment
• B) The investor should use the equity method to account for its investment unless circumstances indicate that it is unable to exercise significant influence over the investee.
• C) The investor must use the cost method unless it can clearly demonstrate the ability to exercise significant influence over the investee
• D) The investor should always use the cost method to account for its investment

Understand how the government measures poverty and the implications of including non-cash benefits in poverty assessments.

Comprehend the implications of tax policies on income distribution and poverty rates.

Understand the factors contributing to urban poverty and the role of welfare.

Grasp the concept of the poverty line and how it is defined and utilized by governments.

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Definitions:

Multimedia Presentation

A presentation that uses a combination of different content forms such as text, audio, images, animations, or video to convey information.

Résumé

A document summarizing an individual's background, education, and work experience used for job applications.

Cover Messages

Typically refers to the primary message or key points that a speaker or writer wants to communicate to their audience.

Personal Networking

Building and maintaining relationships with individuals who might assist with job searches or career advancement through the exchange of information and resources.