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Please help: Application of the Equity Method An understanding of the equity method is best gained by initially examining the FASBs treatment of two questions:

Please help:

Application of the Equity Method An understanding of the equity method is best gained by initially examining the FASBs treatment of two questions:

What factors indicate when the equity method should be used for an investment in another entitys ownership securities?

How should the investor report this investment, and the income generated by it, to reflect the relationship between the two entities?

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