Which of the following statements does not properly reflect the accounting rules for accounting for minority equity investment securities$,$ if fair value is not readily determinable?

Multiple Choice

If there are changes in carrying value, they are not to be reported in net income.

If reported at cost$,$ the reported value is updated when circumstances indicate the asset$$s value is impaired.

If reported at cost$,$ the reported value is to be updated when there is an observable transaction.

Firms may opt to report at fair value or report at cost$.$