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If an investment qualifies for the equity method following a series of purchases, what valuation basis should the investor employ in applying the equity method?
If an investment qualifies for the equity method following a series of purchases, what valuation basis should the investor employ in applying the equity method? Multiple choice question. The investment fair value less any excess fair over book value allocation to specific investee assets or liabilities. The investment's total fair value as of the date the investment qualifies for the equity method. The total cost incurred by the investor over the series of purchases leading to equity method qualification. The investor's percentage ownership multiplied by the fair values of the investee's net assets
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