Answer True and False

$1.$ Equity security holdings between $20$ and SO percent indicates that the investor has a

controlling interest over the investee.

$2.$ Significa nt influence over an investee may be indicated by material intercompa ny trans$$

actions and intercha nge of manageria l personnel.

$3.$ The accou nting profession has concluded that an investme nt of more tha n SO percent of the

voting stock of an investee should lead to a presumpt ion of significa nt influence over an investee.

$4.$ A ll dividends received by an investor from the investee dec rease the investment's carrying

value under the equity method.

S$.$ Compa nies may not use the fair value option for investments that follow the equity method