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Investments in equity securities which do not give the investor significant influence over the investee...

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Accounting

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 22,2023 Bouvier Company purchased 30% of the outstanding common stock of Malinois Company for $3,500,000. This investment gives Bouvier significant influence over Malinois. During the year Malinois reports net income of $500,000 and pays dividends of $75,000. At what amount would Bouvier report its Investment in Malinois on December 31,2023?
A. $3,627,500
B. $3,500,000
C. $3,575,000
D. $3,425,000
Bouvier Company borrowed $5 million cash by issuing a 7-month noninterest-bearing note. The stated discount rate is 8%. Bouvier's effective interest rate on this loan is A. More than the stated discount rate of 8%
B. Less than the stated discount rate of 8%
C. Equal to the stated discount rate of 8%
D. Unrelated to the stated discount rate of 8%
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