
Concept explainers
a.
Introduction: The cost method is used for reporting investments in securities when equity method and consolidation reporting is inapt.
To calculate: The investment income under cost method.
b.
Introduction:The equity method is a way by which externals are informed. In equity method, the changing interest or equity of an investor in investee is reflected.
To calculate:Net income under equity method.
c.
Introduction: The cost method is used for reporting investments in securities when equity method and consolidation reporting is inaptwhereas equity method is a way by which externals are informed. In equity method, the changing interest or equity of an investor in investee is reflected.
To calculate: Net income under fair value method.

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Chapter 2 Solutions
Advanced Financial Accounting
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