Bela Ltd Has Invested in Several Domestic Manufacturing Corporations

question 12

Multiple Choice

Bela Ltd. has invested in several domestic manufacturing corporations. Which of the following investments would most likely be accounted for under the equity method on Bela's financial statements?

• A)A holding of 15,000 of the 50,000 outstanding common shares of Earthwise Co.
• B)A holding of 3,000 of the 10,000 outstanding preferred shares of Earthbent Co.
• C)A holding of 5,000 of the 60,000 outstanding common shares of Earth-Kind Co.
• D)A holding of 20,000 of the 25,000 outstanding common shares of Earth-Clean Co.

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Definitions:

Exports

Goods or services sent from one country to another for sale.

Imports

Goods or services brought into one country from another for sale or use.

Skiing Equipment

Gear and tools designed for use in skiing, including skis, boots, and poles.

Spring Clearance

A period usually set by retailers to clear out seasonal merchandise at reduced prices.