Which of the Following Results in an Increase in the Equity

question 64

Multiple Choice

Which of the following results in an increase in the Equity in Investee Income account when applying the equity method?

• A) Amortizations of purchase price over book value on date of purchase.
• B) Amortizations, since date of purchase, of purchase price over book value on date of purchase.
• C) Sale of a portion of the investment at a gain to the investor.
• D) Investor's share of gross profit from intra-entity inventory sales for the prior year.
• E) Sale of a portion of the investment at a loss.

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Definitions:

Water Temperature

A measure of the degree of heat of water in a particular environment, crucial for the habitat of aquatic organisms.

Floodplain Zone

An area adjacent to rivers or streams that periodically floods, enriching the soil with nutrients.

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A river that follows a winding path through a landscape, often creating deep channels as it erodes the earth over time.

Benthic Zone

The environmental zone situated at the bottom of water bodies like oceans or lakes, encompassing both the sediment surface and the layers beneath it.