3 ) Application of the cost model to an investment one company makes in another entity's shares is straightforward and includes all of the following except a ) Recognize the cost of the investment at the fair value of the shares acquired b ) Unless impaired report the investment at its fair value at each balance sheet date C ) Recognize dividend income when the entity has a claim to the dividend 4 ) When the shares are disposed of derecognize them and report a gain or loss on disposal in net income