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Accounting for equity investments $ 6 0 , 0 0 0 for 2 0 Y 8 . 2 0 Y 8 Jan. 6 2 0

Accounting for equity investments $60,000 for 20Y8.
20Y8 Jan. 6
20Y8 June 30
20 Y 8 Dec. 31
b. Compute the balance of Investment in Gator Co. Stock on December 31,20Y8.
$ q,
c. How does valuing an investment under the equity method differ from valuing an investment at fair value?
Under the equity method, the of the resulting from earnings and dividend distributions. The fair value method uses q, information to value the investment in the - These two methods result in different valuations because the equity method is based or while the fair value approach uses q,2. The two methods ? be related to each other over time. While changes in book value
influence market prices, many other variables influence the market price of a stock.
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