Investments in equity securities which do not give the investor significant influence over the investee company are reported at:
A Cost
B Cost adjusted for changes in the investee's book value.
C Fair value as of the balance sheet date.
D These investments are generally not reported until sold.
On January Bouvier Company purchased of the outstanding common stock of Malinois Company for $ This investment gives Bouvier significant influence over Malinois. During the year Malinois reports net income of $ and pays dividends of $ At what amount would Bouvier report its Investment in Malinois on December
A $
B $
C $
D $
Bouvier Company borrowed $ million cash by issuing a month noninterestbearing note. The stated discount rate is Bouvier's effective interest rate on this loan is A More than the stated discount rate of
B Less than the stated discount rate of
C Equal to the stated discount rate of
D Unrelated to the stated discount rate of
