01. A change in a reporting entity is accounted for by a prospective adjustment so that all financial statements are presented for the same entity.

True

False

02.

\fOn October 1, 2016, White Company declared a property dividend payable in the form of marketable equity securities classied as "available for sale" for nancial accounting purposes. The marketable equity securities will be distributed to the common stockholders on December 1, 2015. The investment in equity securities originally cost White $510,000 on August 1, 2016. The investment's fair value on various dates is as follows: October 1, 2015 $530,000 December 1, 2016 535,000 December 31, 201.6 540,000 dend transaction should be The amount credited to Gain on Disposal of Investments resulting from this 0 $25.000. 0 $0. 0 $20,000. 0 $30.000.i