The reason for a company to invest in another company.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I need help with this general accounting problem using proper accounting guidelines.

I need help with this general accounting question using the proper accounting approach.

Green, an individual taxpayer who is not a day trader, has requested assistance from a CPA to calculate Year 2 gains and/or losses on the sale of various shares of stock. For each of the following transactions, calculate the correct gain or loss and enter the amount in the associated box in the Gain or Loss column. 4. Sold 1,225 shares of ABC Corp. stock at $9 per share. Green purchased 600 shares several years ago at $30 per share. Three years ago, when the stock price was $21, there was a 2-for-1 stock split, and two years ago, when the stock price was $25, there was a 3-for-2 stock split. No other shares were sold by Green before Year 2. 5. Sold 500 shares of XYZ Corp. stock at $20 per share. Green purchased these shares two years prior at $22 per share. Three weeks prior to the sale, Green purchased 100 shares of XYZ stock at $18 per share. 6. Sold 1,600 shares of BX Corp. stock at $4 per share. Green received these shares as a gift from his sister four years ago. The fair market…

Answer 2

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Answer 6

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Answer 7

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Answer 12

Conclusion

Therefore, Option D is the correct answer.

Answer 13

Ch. E - Prob. 1QC Ch. E - Rolling Hills Productions held investments in...Ch. E - Prob. 3QC Ch. E - Crandall's investment is in less than 2% of...Ch. E - Dumois Corporation purchased 1,500 shares of...Ch. E - Prob. 6QC Ch. E - Use the Dumois Corporation data in question 5....Ch. E - Prob. 8QC Ch. E - Prob. 9QC Ch. E - Prob. 10QC

The reason for a company to invest in another company.

To Explain: The reason for a company to invest in another company.

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter E Solutions