Determine whether each question is true or false and explain fully

1- GAAP dictates that an investor company which owns greater than 50% of an investee company should use the equity method of accounting. # 1 is False but explain

2- The realized gain or loss for the difference between the carrying value and the cash received from selling an available-for-sale security is excluded from net income since it flows through OCI. #2 False explain

3- In accounting for income taxes, companies use a balance sheet approach to account for temporary differences. # 3 is True but explain.