If the Investor Sells Part of Its Stake in an Associate

question 29

Multiple Choice

If the Investor sells part of its stake in an Associate, accounted for using the equity method, which method is used to calculate the gain or loss on the sale of these shares?

• A) The average carrying value of the Investment.
• B) FIFO.
• C) LIFO.
• D) Specific Identification.
• Bloom's

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Definitions:

Sex Pilus

A thin, tube-like structure used by bacteria to transfer genetic material during a form of reproduction called conjugation.

Transduction

The process by which sensory stimuli are converted into electrical signals in the nervous system.

Heterotrophic

An organism that obtains its energy and carbon by consuming other organisms, unable to produce its own food.

Autotrophic

Organisms capable of synthesizing their own food from inorganic substances using light or chemical energy.