True Or False

_____The Fair Value Adjustment account has a normal credit balance.

_____Companies report trading securities at fair value, with unrealized holding gains and losses reported in net income.

_____Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest over the investee.

_____A debt security acquired as an investment cannot be classified as a trading security.

_____One requirement related to fair value disclosure is that both the cost and the fair value of all instruments be reported in the notes to the financial statements.

_____Pretax financial income is the amount used to compute income taxes payable.

_____A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.

_____A company should add a decrease in a deferred tax liability to income taxes payable in computing income tax expense.

_____Examples of taxable temporary differences are subscriptions received in advance and advance rental receipts.

_____Permanent differences do not give rise to future taxable or deductible amount.