Temporary investments are recorded at cost but reported at fair market value recorded at cost and reported at cost recorded at cost but reported at lower of cost or fair market value recorded at fair market value and reported at fair market value Javis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $40 a share plus brokerage fees of $300. The entry for the purchase it: Cash 4,000 Stock Investments-Saxton Companyy 4,000 Stock Investments-Saxton Company 4, 300 Cash 4, 300 Stock Investments-Saxton Company 4,000 Brokerage Fee Expense 300 Cash 4, 300 Stock Investments-Saxton Company 4,000 Cash 4,000 Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bonds have an annual interest rate of 6% payable on June 30 and December 31. The entry to record the purchase of the bonds would include; Interest Receivable debit $2,000 Investment in Bonds debit $202,000. Cash credit $200,000 Interest Revenue credit $2,000. Which of the following stock investments should be accounted for using the cost method? Investments of less than 20% investments between 20% and 50% investments of less than 20% and investments between 20% and 50% all stock investments should be accounted for using the cost method Which of the following statements below is not a reason a company may purchase another company's stock? Earning a return on excess cash sustain the other company's stock price gaining control of another company's operations developing or maintaining business relationships The cost method of accounting for stock recognizes dividends as income is only appropriate as part of a consolidation requires the investment be increased by the reported net income of the investee requires the investment be decreased by the reported net income of the investee