1 The impairment loss for an asset that a company intends to hold and use is the difference between the present value of discounted cash flows and the book value. x asset's book value and its fair value. asset's book value and its lower fair value. asset's fair value and the present value of the discounted cash flows. Which of the following methods of accounting for investments is appropriate when the investor has significant influence over the investee? X cost method equity method consolidation lower of cost or market method For available-for-sale equity securities, the receipt of a cash dividend would be reported as a reduction in investments in available-for-sale securities x a reduction from retained earnings dividend income an increase in investment in available-for-sale securities which type of investment in securities must always be classified as a current asset? trading securities available-for-sale securities X held-to-maturity debt securities none of these choices are correct, they may all be classified as current or long-term assets