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Question 2 (1) Under the fair value method, investments are originally recorded at cost and are reported at fair value. Dividends are reported as other
Question 2 (1) Under the fair value method, investments are originally recorded at cost and are reported at fair value. Dividends are reported as other revenues and gains. (2) Under the equity method, investments are originally recorded at cost. Subsequently, the investment account is adjusted for the investor's share of the investee's net income or loss and this amount is recognized in the income of the investor. Dividends received from the investee are reductions in the investment account. Fair value and equity methods. Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson
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