20) A company owns 60% of the stock of the subsidiary company. As such the investor-investee companies represents a parent-subsidiary relationship. Under GAAP, the investment should be accounted for using the consolidation method. The rationale for this method is full disclosure and consistency. (True/False)

21) ABC Company bought 2,000 shares of common stock (5% interest) of JKL Company for $10 a share on January 1, 2020. On December 31, 2020 the JKL stock had a market value of $9 a share. On December 31, 2021, market value of the JKL stock was $15 a share. What amount should ABC Company record as an adjustment to the Fair Value Adjustment account on December 31, 2021?