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Which is not a strategic reason to invest a there has

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47.Which is not a strategic reason to invest?a.There has been a change in the economic climate.b.To establish a presence in a related industry.c.To exercise some influence over a customer or supplier.d.To enter a new industry without starting from scratch.Ans: A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FC: Risk Analysis, AICPA PC: ProjectManagement, IMA: Investment Decisions
48.Which of the following is a debt security?Investment Decisions
49.Mazzeo Company acquires 80 Dodd’s 10%, 5 year, $1,000 bonds on January 1, 2022 for$80,000. The journal entry to record this investment includes a debit toProblem Solving, IMA: FSA
50.Mazzeo Company acquires 80 Dodd’s 10%, 5 year, $1,000 bonds on January 1, 2022 for$80,000. Assume Dodd’s pays interest annually on January 1. Mazzeo’s journal entry atDecember 31, 2022 would include a credit to
51.Mazzeo Company acquires 80 Dodd’s 10%, 5 year, $1,000 bonds on January 1, 2022 for$80,000. If Mazzeo sells all of its Dodd’s Bonds for $78,900 what gain or loss isrecognized?a.Loss of $9,100b.Loss of $1,100c.Gain of $1,100d.Gain of $9,100Ans: B, LO: 1, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSASolution: $78,900$80,000$1,100(Sell.pr.inv. cost)

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