true or false

Part B: (Assume the fair value option is not elected.) 1. Unrealized gains from trading securities are reported in other comprehensive ncome. 2. Investments in stocks and bonds may be classified as trading securities, available-for-sale securitics, and held-to-maturity securities 3.x Company has significant influence over Y Company and owns 35% of the voting stock of Y Company. Company must use the equity method of accounting for the investment in Y Company. 4. Unrealized gains and losses from available-for-sale securities that result from the change in fair value during the period should be reported as other comprehensive income 5. The temporary unrealized gain or loss from held-to-maturity securities must be reported in income for the current period 6. If a security is transferred from available-for-sale to trading securities classification, unrealized holding gains and losses are recognized immediately in the income statement. 7. The equity method of accounting requires a company to include the percent of income of the investee in the investor company's net income for the period 8. The equity method of accounting requires that a company adjust the cost of the investee to fair value at the end of each period 9. A company that receives stock dividends records income equal to the fair value of the stock on the date the dividend is declared. 10. Held-to-maturity sccuritics arc carried at amortized cost using the effcctive interest method