1. Under the fair value option, an investment in the common stock of another entity will be:

   	a.	Reported as a current asset
   	b.	Reported as a noncurrent asset
   	c.	Reported as either a current or noncurrent asset depending on managerial intent.
   	d.	Reported as a current asset only if it was not previously reported as an equity method investment.

2. The economic concept of income would require that an investment in the common stock of another entity be:

   	a.	Reported in the balance sheet at historical cost and that only realized gains and losses be reported in earnings.
   	b.	Reported in the balance sheet at historical cost and that unrealized gains and losses be reported in earnings.
   	c.	Reported in the balance sheet at fair value and that unrealized gains and losses be reported in earnings.
   	d.	Reported in the balance sheet at fair value and that unrealized gains and losses be reported in other comprehensive income.

Answer rating: 100% (QA)

Q1 Correct Answer a Reported as a current asset Explanati... View the full answer