Bargain Wholesale Supply owns stock in Cyrus Corporation, which it intends to hold indefinitely. Should the investment in Cyrus be classified as a short-term investment? Why?
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Bargain Wholesale Supply owns stock in Cyrus Corporation, which it intends to hold indefinitely. Should the investment in Cyrus be classified as a short-term investment? Why?
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- Croger Manufacturing Inc. makes an investment in securities that they intend to hold for a period of time that is unspecified. How will this investment be reported? Multiple Choice Fair value. Present value. Historical cost. Lower of cost or market.Equity accounting for intercorporate investment relies on book value. But if the ownership is an investment, how does fair value accounting enter in? Should it be considered at all?How would you describe a change that a company makes from the equity method to the fair-value method of accounting for investments?
- Which of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issuewhy should a company invest in the stock of another company?Why would a company want to repurchase some of its own stock that they have previously issued?’
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