Based on the Preceding Information,what Amount of Land Will Be

question 50

Multiple Choice

Based on the preceding information,what amount of land will be included in the consolidated balance sheet immediately following the acquisition?

• A) $0
• B) $10,000
• C) $90,000
• D) $100,000

Understand the accounting models applicable to equity and debt investments, including the fair value through profit and loss and the amortized cost model.

Appreciate the criteria and reasoning for classification of investments as short or long-term.

Recognize the purposes and types of corporate investments, including reasons and exceptions.

Understand the characteristics and classification of strategic investments.

---

Definitions:

Sandstone

A sedimentary rock composed mainly of sand-sized minerals or rock grains.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas.

Magnitude 9.0

A measure on the Richter scale indicating an extremely powerful earthquake, capable of causing widespread destruction and significant alteration of the Earth's surface.

Lava Rock

A volcanic rock formed from the cooling and solidification of molten lava.