Please answer this!!!

1. Under IFRS, the fair value option A. Must be applied to all instmments the company holds. B. May be selected as a valuation method by the company at any time during the rst 2 years of ownership. C. Reports all gains and losses in income. D. All of the choices are correct Equity investments acquired by a corporation which are accounted for by recognizing unreaized bolting gains or losses as other comprehensive income and as a separate component of equity are A. nontrading where a company has holdings of less than 20%. B. trading investments where a company has holdings of less than 20%. C. investments where a company has holdings of between 20% and 50%. D. investments where a company has holdings of more than 50%. When a company has acquired a "passive interest" in another corporation, the acquiring company should account for the investment A. by using the equity method. B. by using the fair value method. C. by using the effective interest method. D. by consolidation Unreaized holding gains or losses on trading investments are reported in A. equity. B. net income. C. other comprehensive income. D. accumulated other comprehensive income. When a company holds between 20% and 50% of the outstanding ordinary shares of an investee. which of the following statements applies? A. The investor should always use the equity method to account for its investment. B. The investor should use the equity method to account for its investment unless circum stances indicate that it is unable to exercise "signicant inuence" over the investee. C. The investor must use the fair value method unless it can clearly demonstrate the ability to exercise "signicant influence" over the investee. D. The investor should always use the fair value method to account for its investment. Koehn Corporation accounts for its investment in the ordinary shares of Sells Company under the equity method. Koehn Corporation should orcinariy record a cash dividend received from Sells as A. a reduction of the carrying value of the investment B. share premium. C. an adrition to the carrying value of the investment. D. dividend income. 7. Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the A. investor sells the investment. B. investee declares a dividend. C. investee pays a dividend D. earnings are reported by the investee in its financial statements. 8. Judd, Inc., owns 35% of Cosby Corporation. During the calendar year 2012, Cosby had net earnings of $300,000 and paid dividends of $30,000. Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively? A. Understate, overstate, overstate B. Overstate, understate, understate C. Overstate, overstate, overstate D. Understate, understate, understate 9. An impairment loss is the difference between the recorded investment and the A. expected cash flows. present value of the expected cash flows. contractual cash flows. D. present value of the contractual cash flows. 10. Companies account for transfers of investments between categories A. prospectively, at the end of the period after the change in the business model. B. prospectively, at the beginning of the period after the change in the business model. C. retroactively, at the end of the period after the change in the business model D. retroactively, at the beginning of the period after the change in the business model. 11. Which of the following statements is false? A. The ASB requires that companies classify financial assets into two measurement categories - amortized cost and fair value. B. The Unrealized Holding Gain/Loss-Equity account is reported as a part of other comprehensive income. C. An investment of more than 50 percent of the voting stock of an investee should lead to a presumption of significant influence over an investee. . All dividends received by an investor from the investee decrease the investment's carrying value under the equity method. 12. If the assets of the investee are fairly valued, the excess of acquisition cost over the carrying amount of the net assets is attributed to A. Depreciable asset B. Non-depreciable asset C. Goodwill D. All of the above 13. If there is an excess of cost over carrying amount of the net assets of the investee, the excess may be attributable to A. Depreciable assets Non-depreciable assets Goodwill D. All of the above14. If the excess of cost over the carrying amount of the net assets of the investee is attributable to land A. It is not amortized but expensed when the land is sold B. It is amortized and recognized as expense regardless of when sold C. It is amortized and expensed when revalued. D. None of the above 15. Any excess of the investor's share of the net fair value of the associate's identifiable assets and liabilities over the cost of the investment is A. Excluded as income in the determination of the investor's share of the associate's profit or loss in the period in which the investment is acquired. B. Included as income in the determination of the investor's share of the associate's profit or loss in the period in which the investment is acquired. C. Not recorded nor amortized in the accounting books of the investor. D. None of the above