Need help responding to the following:

1. "Other comprehensive income" is an equity account that records gains and losses resulting from events over which your company has no control. Examples include changes to foreign currency exchange rates, changes to the value of available-for-sale securities and gains or losses on pension plans. Under the equity method, you must record your share of the investee's OCI as OCI on your own books. You report OCI on the income statement below net income. You report accumulated OCI on the balance sheet. Under the cost method, you make no accounting entries regarding investee OCI.

2.Fair market valuation and the equity method are two accounting treatments that companies use that assess how much their investments are worth. Fair market value is defined as an asset's sale price if a transaction occurred between a willing buyer and seller. The equity method considers the asset's original purchase price and the investor's stake in the asset. The equity method of accounting should generally be used when an investment results in a 20% to 50% stake in another company, unless it can be clearly shown that the investment doesn't result in a significant amount of influence or control. Under the equity method, the investment is initially recorded in the same way as the cost method. However, the amount is subsequently adjusted to account for your share of the company's profits and losses. Dividends are not treated as income under this method. Rather, they are considered a return of investment, and reduce the listed value of your shares. Under the equity method, you update the carrying value of your investment by your share of the invitees income or losses. In addition, you decrease carrying value by any dividends you receive on the shares. You do not otherwise adjust the carrying value to reflect changes to the fair market value of the invested. In the cost method, you never increase the book value of the shares because of an increase in fair market value. However, you can mark down the book value if the invitees fair market value is impaired. Fair market value is the amount a purchaser would pay to buy a company.