6. In the case of an equity method investment for which there is a change in fair value A) unrealized gains are reported in the income statement, but unrealized losses are not reported B) unrealized gains and losses are reported on the balance sheet only. C) unrealized gains and losses are recognized in other comprehensive income. D) no gains are recognized in income until the investment is sold. 7. When a noncontrolling Equity Method Investment balance is reduced to zero as investee incurs losses A) the investor must change to the fair value method. B) the investment remains at zero until the investment is sold. C) the investment remains at zero until profits have eliminated the unrealized loss. D) additional investment losses will result in a credit balance in Equity Investment. 8. The main difference between a "basket purchase" of net assets and an acquisition of net assets that qualifies as a business is that A) in an acquisition of net assets that qualifies as a business, the assets are not actually recorded on the investor's books. B) in an acquisition of net assets that qualifies as a business, all assets are valued at full fair value regardless of purchase price; while in a "basket purchase" of net assets the purchase price is allocated to the various assets. C) in a "basket purchase" of net assets, the assets are valued at fair value while in an acquisition of net assets that qualifies as a business, assets are recorded at book values. D) There is no difference in the accounting for the two types of transactions. 9. If Foster Company acquires all of the common stock of Bava, Inc. Where will the entries necessary to arrive at consolidated balances appear? DUO A) On the books of both the parent and the subsidiary B) On Bava's books only DO C) On Foster's books only D) On a worksheet only