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True-False:

The following statements are either true or false. Place a (T) in the parentheses before each true statement and an (F) before each false statement.

1. ( ) Trading securities are either debt or equity securities that the company intends to actively trade for profit.

2. ( ) An investor who owns 20% or more of a corporation's voting stock is presumed to have significant influence over the investee.

3. ( ) An investment in a security available-for-sale is reported on the balance sheet at cost.

4. ( ) Unrealized holding gains and losses on investments in equity securities available-for-sale are reported in the stockholders' equity section of the balance sheet.

5. ( ) An unrealized gain on an investment classified as a trading security is reported on the income statement.

6. ( ) The equity method is used to account for investments in equity securities available-for-sale.

7. ( ) At acquisition, the purchase of equity securities is recorded at cost regardless of which method is used to account for the investment.

8. ( ) An investment in a bond classified as held-to-maturity is reported on the balance sheet at its fair (market) value.

9. ( ) Investments in equity securities available-for-sale are reported on the balance sheet at their market values.

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