1. How investments are accounted for does not usually depend on

A)	company strategy.

B)	the type of investment.

C)	whether the investments are bought on margin.

D)	management intent.

2.

At December 31, 2017, Escargot Corp. has the following equity securities (no significant influence) that were purchased earlier in 2017, its first year of operation:

		Cost		Market
Security A		$ 40,000		$41,500
B		56,000		62,000
Totals		$ 96,000		$ 103,500

If the investments are being accounted for under the fair value through net income (FVNI) model, the total book value of the investment accounts should

A)	remain unchanged.

B)	be decreased by $16,000.

C) be decreased by $7,500.

D) be increased by $7,500.

3.

When the investor has control over the investee, the reporting model to be used is the

A)	market value model.

B)	consolidation model.

C)	equity method.

D)	cost model.