On April 1, North Company issued bonds in the market. Upon issue, South Company acquired 10% of North Company's issue. On November 30, South sold the North Company bonds in the market; the bonds were acquired by East Company. On December 31, which, if any, of the following companies is an investee?

A) North

B) South

C) East

Question

Graham Bentley

Business

27 June, 23:09

On April 1, North Company issued bonds in the market. Upon issue, South Company acquired 10% of North Company's issue. On November 30, South sold the North Company bonds in the market; the bonds were acquired by East Company. On December 31, which, if any, of the following companies is an investee?

A) North

B) South

C) East

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Answers (1)

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Bobby · Answer 1

C) East

Explanation:

North company is the issuer of the bonds.

South invested in the bond but, in November 30th It sold their entire participation in North Bonds therefore, no longer an investee.

East Company is the holder of the bodns previously hold by South and we aren't givne any information about being sold again therefore, it is the investee at December 31th