Equity method: It is a method of reporting the equity investments. This method is used when an investor company is having the significant influence over the investee company that is Investor Company invests more than 20% but less than 50% in the equity of the investee company. To Record: the purchase of the investment and its share of BW's net income and dividends using the equity method.

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Chapter D, Problem D.2AP

To determine

Equity method:

It is a method of reporting the equity investments. This method is used when an investor company is having the significant influence over the investee company that is Investor Company invests more than 20% but less than 50% in the equity of the investee company.

To Record: the purchase of the investment and its share of BW's net income and dividends using the equity method.

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