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:

IR

Infrared spectroscopy, a technique used in chemistry to identify compounds and investigate molecular structure by analyzing the vibration of bonds under infrared light.

Triplet

A term in quantum mechanics referring to a system (often an electron) that exists in three possible states with the same energy, typically in the context of spin states.

NMR

Nuclear Magnetic Resonance, a technique that exploits the magnetic properties of certain atomic nuclei to determine physical and chemical properties of atoms or the molecules in which they are contained.

Quartet

In nuclear magnetic resonance (NMR) spectroscopy, a signal pattern of four peaks that suggests the presence of three equivalent protons adjacent to the observed nucleus.