D Question 18 2 pts When a company accounts for an investment under the purchase method of accounting the book value of the subsidiary's assets is added to the parent company's assets. the book value of the subsidiary's liabilities is added to the parent company's liabilities. the company owns more than 50% of the stock of the investee. O a year-end adjustment is made to increase or decrease the carrying value of the investment to fair market value Question 19 Passive investments in equity Securities are reported on the balance sheet at original cost. may have unrealized price increases or decreases which affect shareholders equity but not the income statement are reported in the shareholders' equity section of the balance sheet at fair value. may have unrealized gains or losses on the income statement associated with price increases or decreases