10. Say which of the following three statements is (are) true. One: An investment in a debt security classified as "To hold to maturity" is impaired when "it is probable that the investor will not be able to collect all the amounts due in accordance with the contractual terms. Two: The investment is reduced to its market value and that market value is the new cost (new cost basis) Three: The corresponding debit is to "Allowance for doubtful accounts". A. Only statement One is true b. Assertion One and Two are both true c. All three statements are true d. None of the three statements is true. 11. When a bond classified as "available for sale" has suffered impairment: A. A loss is recognized using the CECL model b. A loss is recognized that CANNOT exceed the difference between the amortized cost and the market value. c. No loss is recognized because the company will sell the bond immediately. d. A loss is recognized as "Other comprehensive income". 12. A company (Investor) has an investment in common shares of another company (Investee). The investment represents 10% of the common shares of Investee. A. The investment, as it is less than 20%, CANNOT be accounted for under the equity method. b. If Investor has the ability to exert significant influence over Investee's operations, he may use the equity method if he wishes. c. If Investor has the ability to exert significant influence over Investee's operations, he must use the equity method. d. All investments in equity securities are carried at market value, regardless of whether or not the Investor has the ability to exert significant influence