Which of the Following Is Not True When the Fair

question 164

Multiple Choice

Which of the following is not true when the fair value option is elected for an investment that would normally be accounted for under the equity method?

• A)No journal entry need be made to recognize the investor's portion of the investee's net income.
• B)Unrealized gains and losses on that investment are recognized in net income.
• C)No journal entry need be made to recognize the investor's portion of dividends paid by the investee.
• D)All of the above are true.

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Definitions:

Agricultural Producer

An individual or company involved in the cultivation of plants and rearing of animals for food, fiber, and other products.

World Bank

An international financial institution offering loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Agricultural Exports

Products derived from farming and agriculture that are sold and shipped to other countries, contributing to a nation's economy.

Port Facilities

Infrastructure and services provided at a port to support the loading, unloading, maintenance, and storage of ships and their cargoes.