Unrealized holding gains or losses which are recognized in income are from securities classified as held-to-maturity. b. available-for-sale. trading d. none of these. Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses as other comprehensive income and as a separate component of stockholders' equity are available-for-sale securities where a company has holdings of less than 20e%. b. trading securities where a company has holdings of less than 20%. securities where a company has holdings of between 20% and 50% . d. securities where a company has holdings of more than 50%. 2. a When a company holds between 20% and 50% of the outstanding stock of an investee, which of the following statements applies? 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 "significant influence" over the investee. The investor must use the fair value method unless it can clearly demonstrate the ability to exercise "significant influence" over the investee. d. The investor should always use the fair value method to account for its 3. at c. C. investment. 4. Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: $350,000 2010 2011 (600,000) 2012 700,000 Puritan's tax rate is 40% for all years. Puritan elected a loss carryback. Puritan was certain it would recover the full tax benefit of the NOL. What did it report on December 31, 2011, as the deferred tax asset for the NOL carryforward? A.$280,000 B.$200,000 C.$100,000 D.$0 1 MPORTANT