1) For accounting purposes, the method used to account for investments in common stock is determined by

whether the acquisition of the stock by the investor was "friendly" or "hostile"

the amount paid for the stock by the investor

whether the stock has paid dividends in past years

the extent of an investor's influence over the operating and financial affairs of the investee

2) Managerial accounting reports are

related to the entire business entity only

prepared periodically only

prepared according to GAAP

prepared according to management needs\

3) Changes in the value of available-for-sale securities

are reported as part of stockholders' equity

are not recognized

are recognized on the income statement and as part of stockholders' equity

are recognized on the income statement