Answer the following statements true (T) or false (F)
1. An investor owns a controlling interest when the investor has legal control over the investee company and generally owns more than 50% of the investee's voting stock.
2. A parent company is a company that is controlled by another corporation.
3. At the end of each accounting period, trading debt securities must be adjusted and reported at fair value.
4. The fair value of a trading debt security is the price that would be used if the company were to sell the investment on the market.
5. Companies make a year-end adjustment of the trading debt investment to bring the account to historical value.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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