If 30% of the common shares of an investee are purchased as a long-term investment, the appropriate classification for this investment is most likely
A) held for trading investments.
B) equity investments.
C) non-strategic investments.
D) investment in associates.

Question

Quizplus · Accepted Answer

When an investor holds 20% to 50% of the voting stock of an investee, it is presumed to have significant influence, and the investment is classified as an investment in associates.

If 30% of the Common Shares of an Investee Are