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Idaho Company Purchased, as a Long-Term Investment, 30% of the Outstanding

Question 16

Multiple Choice

Idaho Company purchased, as a long-term investment, 30% of the outstanding nonvoting preferred stock of Potato Corporation. Which of the following classifications should be used by Idaho Company in accounting for the investment?


A) Trading securities.
B) Held-to-maturity.
C) Available-for-sale.
D) Consolidation.

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