Have value based on some other security or index.
Requires positive intent and ability.
Reduces investment account under the equity method due to change in intangible asset.
Used when investor can significantly influence investee.
Requires recognition on the income statement if judged to be other than temporary.
Used when investor has effective control of investee.
Reported by investor, below income from continuing operations and in proportion to ownership interest in investee.
Reported on the income statement for trading securities.
Recognized only to the extent of carrying value under the equity method.
Results when fair value of investee’s assets exceeds carrying value.
1. Derivatives
2. Consolidation
3. Equity method
4. Extraordinary item
5. Additional depreciation
6. Impairment of securities available for sale
7. Securities held to maturity
8. Amortization of purchased patent
9. Holding gains and losses
10. Losses of investee

Listed below is a set of phrases that describe or characterize the terms. Match each phrase with the correct term by placing the letter designating the best term in the space provided by the phrase. Cost less accumulated depreciation.
Occurs with a significant decline in value.
Three methods are employed to record these costs.
Triggers commencement of depreciation.
Produces a level amount of annual depreciation.
Recorded like any other asset disposition.
Only used for tax purposes.
Estimates service life in units of output.
Aggregates assets that are physically dissimilar.
Does not subtract residual value from cost.
1. Date placed in service
2. Involuntary conversion
3. Improvements
4. Book value
5. Percentage depletion
6. Straight-line method
7. Composite method
8. Double-declining balance
9. Activity-based method
10. Write down of asset