ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 7, Problem 7.18AQ
To determine

Methods of Investment Accounting

There are two methods of investment accounting such as:

  1. Cost Method − This method is used when there is a long-term investment and ownership stake of less than 20%.
  2. Equity Method − This method is used when investment results in 20% to 50% stake in another company.

: The effect of each method of investment when there is unrealized intercompany gain on parent’s books.

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Chapter 7 Solutions

ADVANCED FINANCIAL ACCOUNTING-ACCESS

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