44. Alfred issued 9%, 10-year bonds dated January 1, 2010, with a face value of $100,000 at 102 plus accrued interest on March 1, 2010. Alfred amortizes premiums and discounts using the straight-line method. Expenses connected with the issue totaled $5,000 and were deducted in arriving at the net proceeds. The entry to record the issue would include a debit to cash for (Points: 4) $97,000 $98,500 $102,000 $103,500 45. Under the equity method, dividends received by the investor should be recorded as (Points: 4) a reduction in the carrying value of the investment an addition to the carrying value of the investment dividend revenue investment revenue 47. Acquisition of greater than 20% of the outstanding stock of a company normally suggests the use of the (Points: 4) consolidation method equity method fair-value method straight-line method 48. The fair value method of accounting for investments was proposed to overcome which issues associated with the prior use of lower of cost or market? (Points: 4) reliability and liquidity relevance and liquidity reliability and financial flexibility relevance and financial flexibility 49. Which of the following disclosures is not required for investments in securities by current GAAP? (Points: 4) the proceeds from sales and the gross realized gains and losses from the sale of available-for-sale securities the circumstances leading to the decision to sell or transfer a trading security the contractual maturities of held-to-maturity debt securities the aggregate fair value of available-for-sale securities by major security type 50. All of the following statements regarding held-to-maturity debt securities are true except (Points: 4) premiums and discounts must be amortized over the remaining life of the bonds the debt securities should be valued at market value the realized gain or loss is the difference between the original cost and the proceeds from their sale interest revenue may be debited at the time of acquisition