The equity method of accounting is a method where the investment is recognized at cost initially and thereafter, accounted for based on the change in the investor’s share in investee net assets. The share in the investee’s profit or loss is included in the investor's profit or loss. The equity method balance of M Corporation’s investment in OT Company. at December 31, 2021.

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Chapter 1, Problem 13P

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Introduction: The equity method of accounting is a method where the investment is recognized at cost initially and thereafter, accounted for based on the change in the investor’s share in investee net assets. The share in the investee’s profit or loss is included in the investor's profit or loss.

The equity method balance of M Corporation’s investment in OT Company. at December 31, 2021.

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