41. When a bond classified as "available for sale" has been impaired: a. A loss is recognized using the CECL model b.A loss is recognized that may NOT exceed the difference between the amortized cost and the market value. c. No loss is recognized because the company is going to sell the bond immediately. d.A loss is recognized as "Other comprehensive income". 42. A company (Investor) has an investment in the common stock of another company (Investee). The investment represents 10% of Investee's commong stock. a. The investment, being less than 20%, cannot be accounted for under the equity method. b.If Investor has the ability to exercise significant influence over Investee's operations, Investor may use the equity method if desired. c. If Investor has.the ability to exercise significant influence over Investee's operations, Investee must use the equity method. d.All investments in equity securities are carried at market value, regardless of whether.or. not Investor has the ability to exercise significant influence. 43. On January 2, 2022, Investor acquired 10% of Investee's common stock. the investment cost was $50,000. In the year 2022 , Investee reported net income of $100,000 and paid dividends of $20,000. On December 31 , the market value of Investee shares held by Investor was $57,000. The effect of this investment on the Investor's Statement of income and expenses for the year 2022 was: a. Dividend income of $2,000 b.Dividend income of $2,000 and unrealized gain of $7,000 c. Investment income of $10,000 d. Investment income of $10,000 and unrealized gain of $7,000 44. On January 2, 2022, Investor acquired 30% of Investee's common stock. the investment cost was $50,000. In the year 2022, Investee reported net income of $100,000 and paid dividends of $20,000. On December 31 , the market value of Investee shares held by Investor was $57,000. The effect of this investment on the Investor's Statement of income and expenses for the year 2022 was: a. Dividend income of $6,000 b.Dividend income of $6,000 and unrealized gain of $7,000 c. Investment income of $30,000 d. Investment income of $30,000 and unrealized gain of $7,000