Question
Investor company owns 35% of investee company voting stock and accounts for the investment under the equity method. investors share of investees current net loss
Investor company owns 35% of investee company voting stock and accounts for the investment under the equity method. investors share of investees current net loss exceeds the balance in the investment account. investor should in most cases
A. Lower of cost or market, with unrealized gains and losses include in earnings.
B. Fair value, with unrealized gains included in earnings only to the extent of previously recognized unrealized losses unless accounting alternative is elected..
C. Fair value, with unrealized gains and losses included in earnings unless accounting alternative is elected.
D. Fair Value, with unrealized gains and losses included in other comprehensive income unless accounting alternative is elected.
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