as an available for sale investment and only a portion of ima rsquo s 2006 dividends 605466

Pal Corp.’s 2006 dividend revenue included only part of the dividends received from its Ima Corp. investment. Pal Corp. has an investment in Ima Corp. that it intends to hold indefinitely. The balance of the dividend reduced Pal’s carrying amount for its Ima investment. This reflects the fact that Pal accounts for its Ima investment

1. As an available-for-sale investment, and only a portion of Ima’s 2006 dividends represent earnings after Pal’s acquisition.
2. As an available-for-sale investment and its carrying amount exceeded the proportionate share of Ima’s market value.
3. As an equity investment, and Ima incurred a loss in 2006.
4. As an equity investment, and its carrying amount exceeded the proportionate share of Ima’s market value.