Which of the following methods of accounting for investments is appropriate when the investor controls the investee?

1.cost method

2.equity method

3.consolidation- I think this is the correct option

4.lower of cost or market method

Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transactionsexcept

1.recognition of unrealized holding gains and losses

2.initial recording of cost- I think this correct

3.recognition of realized gains or losses on sales

4.recognition of dividend and interest income