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The most common method of accounting for unconsolidated subsidiaries is the equity method. Required: Answer the following questions with respect to the equity method. Under

The most common method of accounting for unconsolidated subsidiaries is the equity method.
Required:
Answer the following questions with respect to the equity method.
Under what circumstances does a company apply the equity method?
At what amount does a company record the initial investment and what events subsequent to the initial investment (if any) change this amount?
How does a company recognize investment earnings under the equity method, and how does it determine the amount?

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