Answer true or False and explain fully
1) When accounting for investments, significant control leads touse of the equity method of accounting for balance sheet valuation and income statement recognition.
2) For a capital lease, at inception of the lease, the lessee records an asset and liability measured as the present value of the minimum lease payments. Subsequently the lessee records depreciation expense and interest expense.
3) In accounting for investments, at the point of acquisition, a company can choose the fair value option for some assets without choosing it for all asset. If selected, all unrealized gains and losses are reported in net income.
4) If the owner of the leased asset pays executor costs and then passes them along to the lessee, these costs should not be included in the calculation of the minimum lease payments for group I determination of capital vs operating lease treatment.