). Securities classified as trading securities could be reported as either current or long-term in a classified balance sheet, depending upon their maturity dates True False Companies must always use the equity method when they hold between 20% and 50% of the common stock of an investee. 2. True False 3. Unrealized gai ins and losses are included in net income for securities that are classified as available for sale. True False Both trading securities and securities available for sale are reported at their fair values. frue) False 4. During 2016, Largent Enterprises purchased 400 shares of Alfredo common stock at $60 pe share, plus a $600 brokerage commission on December 12. Largent accounts for this 5. investment as trading securities. At December 31, 2016, the market values of the security S per share: Required: (1.) Prepare the journal entries to record the acquisition of the investment (2.) Prepare any necessary adjusting entries at the year end. Investment 24 Io