
Concept explainers
Equity investment:
Equity investments are stock instruments which claim ownership in the investee company and pay dividend revenue to the investor company.
Cost method:
Cost method is the accounting method used for accounting equity investments which claim less than 20% of the outstanding stock of the investee company.
Equity method:
Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.
To indicate: The differences between accounting for dividend revenue under

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Chapter 13 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
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