Equity method: The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary. Cost method: The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made. To prepare : The amortization schedule for the years 2015 , 2016 , 2017 & 2018 .

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Answer 1

Question

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

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Answer 2

Question

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Answer 6

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Answer 7

Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years 2015,2016,2017 & 2018 .

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 3 - Prob. 1UTI Ch. 3 - Prob. 2UTI Ch. 3 - Prob. 3UTI Ch. 3 - Prob. 4UTI Ch. 3 - Prob. 5UTI Ch. 3 - Prob. 6UTI Ch. 3 - Prob. 7UTI Ch. 3 - Prob. 1E Ch. 3 - Prob. 2E Ch. 3 - Prob. 3.1E

Solution Summary: The author explains the equity method and the cost method, which retains the original cost of acquisition balance in the subsidiary account.

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Chapter 3 Solutions