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Equity method vs Fair Value Method ( MC 1 9 & 2 0 ) On January 1 , 2 0 2 2 , an investor
Equity method vs Fair Value Method MC & On January an investor purchases for shares of an investee at $ per share. The shares represent ownership in the investee. The investee's common stock does not have a readily determinable value. On January the book value of the investee's identifiable net assets and liabilities equals $ and $ respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values, except for a customer list. On January the customer list had a book value of $ and a fair value estimated at $ and a year remaining useful life. During the year ended Dec. the investee company reported net income equal to $ and dividends equal to $ A If the investor CANNOT exert significant influence over the investee, what method must the investor use to record the investment? Make the journal entries for the year. What is the balance in the investment account. tableInvestment
Equity method vs Fair Value Method MC &
On January an investor purchases for shares of an investee at $ per share. The shares represent ownership in the investee. The investee's common stock does not have a readily determinable value. On January the book value of the investee's identifiable net assets and liabilities equals $ and $ respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values, except for a customer list. On January the customer list had a book value of $ and a fair value estimated at $ and a year remaining useful life. During the year ended Dec. the investee company reported net income equal to $ and dividends equal to $
A If the investor CANNOT exert significant influence over the investee, what method must the investor use to record the investment?
Make the journal entries for the year.
What is the balance in the investment account.
tableInvestment
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