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70 When the equity method of accounting for investment is used by the investor, the investment account A cash dividend is received from the investee
70 When the equity method of accounting for investment is used by the investor, the investment account
- A cash dividend is received from the investee
- The investee reports net income for the year
- The investor records additional depreciation related to the investment
- The investee reports a net loss for the year.
71- Which of the following investment securities held by Bogey Inc, are not reported at fair value in its balance sheet?
- Debt securities held as available for sale securities.
- Debt securities held to maturity.
- Bonds held as trading securities
- All of these answer choices are reported at fair value.
73- When a debt security is appropriately carried and reported as securities available for sale, a gain should be reported in the income statement:
- When fair value of the security increases.
- When the present value of the security increases.
- Only when the Dow Jones industrial Average increases at least 100 points.
- Only when the security is sold.
74- when the fair value option is elected for available for sale securities:
- Amortized cost is used on the balance sheet.
- Unrealized holding gains and losses are included in accumulated other comprehensive income (loss) account
- Unrealized holding gains and losses are included in net income
- None of the above
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