Chapter 15 Investments and Fair Value Accounting 709 Discussion Questions why might business invest cash in tema investments? what causes again or loss on the sale of a food investment When is the equity method the appropriate account ing for equity investments How does the accounting for a divided ditler between the cost method and the entity 6 What is the difference in the accounting for a portfolio of trading securities and a portfolio of available for sale securities? 7. If Valuation Allowance for Available for Sale In- vestments has a credit balance, how is it treated on the balance sheet? How would a debit balance in Unrealized Gain (Loss) on Available for Sale Investments be reported in the financial statements? method? If an investor owns more than 50% of an investee is the investment treated on the investor's financial statements? 9. What are the factors contributing to the trend to ward fair value accounting? 10. How are the balance sheet and income statement affected by fair value accounting