Answer the ones with stars on them.

Module 9 1 Intercorporate Entities 9-40 Superscript An" denotes assignments based on Appendix 9M9B). QUESTIONS 09-1. Q9-2. What is a passive investment? Why do companies have passive investment? What is an unrealized gain (loss)? Explain. 09.3. Where are unrealized gains and losses related to marketable equity securities reported in the financial Describe the accounting , Yetman Company purchases 40% of the common stock of Livnat Com- statements? 09-4. t does significant influence imply regarding intercorporate investments? procedures used for such investments. On January 1 of the current year pany for $50 Duri what amount should a 09-5. 0,000 cash. This 40% ownership allows Yetman to exert significant influence over Livnat. ng the year, Livnat reports $160,000 of net income and pays $120,000 in cash dividends. At year-end, ppear in Yetman's balance sheet for its investment in Livnat? unting method is used when a stock investment represents more than 50% of the investee company's voting stock and allows the investor company to "control" the investee company? Explain. 09-7. What is the underlying objective of consolidated financial statements? 09-8.4 What is a derivative? How do companies use them to hedge risk? 09-9.A For accounting purposes, what are the two types of hedges? How are unrealized derivative gains and 09-10. What are some limitations of consolidated financial statements? 09.11. How does a weakening SUS affect the consolidated balance sheet of a company with foreign subsidiaries? 09-12.B What is the difference between a spin-off and a split-off? Under what circumstances can either result losses treated under each accounting method? in the recognition of a gain in the income statement? Assignments with the logo in the margin are available in BusinessCouse. See the Preface of the book for details