For which of the following classifications of equity investments is there no fair value adjustment, as the investment is consolidated into the financial statements using the consolidation method?

a$.$ Insignificant influence

b$.$ Significant influence

c$.$ Controlling influence

d$.$ None of the above

For which of the following classifications of equity investments is there no fair value adjustment, as the investment has been reported in the financial statements using the equity method?

a$.$ Insignificant influence

b$.$ Significant influence

c$.$ Controlling influence

d$.$ None of the above

For which of the following classifications of equity investments is the fair value adjustment recorded and included in the income statement?

a$.$ Insignificant influence

b$.$ Significant influence

c$.$ Controlling influence

d$.$ None of the above

Which of the following components of a journal entry would be required to record a company's acquisition of $$1,000,000$ in debt securities for cash?

a$.$ Debit Cash $$1,000,000$

b$.$ Credit Cash $$1,000,000$

c$.$ Debit Debt investments $$1,000,000$

d$.$ B and C only

Which of the following components of a journal entry would be required to record a company's receipt of $$1,000$ cash for interest earned on its debt investments?

a$.$ Debit Cash $$1,000$

b$.$ Credit Cash $$1,000$

c$.$ Debit Interest income $$1,000$

d$.$ None of the above

Which of the following components of a journal entry would be required to record a compan sale of its equity method investment $($significant influence$)$ at book$/$carrying value for cash?

a$.$ Debit Equity Method investment; Credit Cash

b$.$ Debit Debt investments; Credit Cash

c$.$ Debit Cash; Credit Equity Method investment

d$.$ Debit Cash; Credit Debt investment