I am trying to figure out how this would be classified on a balance sheet: A retail company who sells clothing invests $50,000 in a real estate property that it plans to sell in 18 months. How is this treated? Is the investment an asset or is it some type of equity?
2006-10-25 09:25:15 · 4 answers · asked by cbizzle 1 in Business & Finance ➔ Investing
Since your holding it for more than one year it is considered a long term fixed asset. If you were holding it for less than a year, it would be considered as a short term investment.
2006-10-25 11:34:24 · answer #1 · answered by rajatharjani 4 · 0⤊ 0⤋
Fixed assets.
2006-10-25 16:53:01 · answer #2 · answered by NC 7 · 0⤊ 0⤋
It is a debit entry in investments under long term assets.
2006-10-25 16:33:13 · answer #3 · answered by BD in NM 6 · 0⤊ 0⤋
fixed asset.
2006-10-25 16:29:56 · answer #4 · answered by Anonymous · 1⤊ 0⤋