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For Each of the Following Scenarios,state the Type of Investment

question 14

Short Answer

For each of the following scenarios,state the type of investment:
1.Available-for-sale debt investment
2.No significant influence equity investment
3.Trading debt investment
4.Significant influence equity investment
5.Held-to-maturity debt investment
6.Controlling interest equity investment
Indicate your answer by placing the correct number next to the scenario.
a.________ Golden Corp.owns a debt security in Yellow Corp.Golden plans on selling the debt after one year.
b.________ Horizon Inc.owns 18% of the voting stock of Sunset Corp.Horizon does not have the ability to participate in the decisions of Sunset.
c.________ Eastern Inc.owns 32% of Western's voting stock.Eastern has the ability to exert influence over Western.


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