Refer to question #13. After you explain the appropriate accounting to the student, she comes to you with questions. She is confused about the equity method. Explain how the equity method of accounting for investments is different from other investment measurement methods. What information will the equity method provide for a user of the financial statements?

Data from question 13

You have been assigned the task of training a summer student for your company. The student is required to account for an investment in an associate. Provide the student with instructions. Include an explanation of what an investment in associate means and the required journal entries each year.