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Fair Value and Equity Methods Conceptual Questions 1. What are the two fair value methods to account for investments? 2. What type of security can be accounted for under both methods? 3. What type of security can be accounted for under only one of these methods? Which method is that? Solution Cost method and equity method Stock or equity securities with more than 50% ownership Available for sale securities, Equity method.

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Fair Value and Equity Methods Conceptual Questions 1. What are the two fair value methods to account for investments? 2. What type of security can be accounted for under both methods? 3. What type of security can be accounted for under only one of these methods? Which method is that? Solution Cost method and equity method Stock or equity securities with more than 50% ownership Available for sale securities, Equity method

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