True or False

1. The equity method should be used if the ability to exercise significant influence is temporary or if the investee is a foreign company operating under severe exchange restrictions or controls.

2. True or False

Under the fair value/cost method the dividend received are record as Income from Investment.

3. True or False

The fair value/cost method is used for common stock investments of less than 20% unless it can be demonstrated that the investor company has the ability to exercise significant influence over the investee company.