How do I solve for the investment in another company?
Solve:-
Current Assets:-
Marketable securities (short-term investments) - These can be both equity and/or debt securities for which a ready market exists. Furthermore, management expects to sell these investments within one year's time. These short-term investments are reported at their market value.
Long-Term assets:-
Investments - These are investments that management does not
expect to sell within the year. These investments can include
bonds, common stock, long-term notes, investments in tangible fixed
assets not currently used in operations (such as land held for
speculation) and investments set aside in special funds, such as
sinking funds, pension funds and plan-expansion funds. These
long-term investments are reported at their historical cost or
market value on the balance sheet.
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