Describe the criterion for applying the equity method to an investment in stock. How do you determine the amount of income to be recognized under the equity method. How are dividends accounted for that are received when the equity method is applied. Why? What impact does a change in fair value have on the reporting of an equity method investment. Explain in your own words why certain investments must be accounted for under the equity method while others are not. Sometimes it's necessary to change from the equity method to another method of accounting for an investment. Explain the circumstances that would require such a change and how the investor would account for this change in accounting method