If an Investment Accounted for Using the Equity Method Suffers

question 17

Multiple Choice

If an investment accounted for using the equity method suffers an impairment loss and the value in use of the investment subsequently recovers, what accounting entry should be made?

• A) None; once an investment has been written down, it cannot subsequently be written up.
• B) It may be written up in value but not more than the amount of the impairment loss that was recorded at the time of impairment.
• C) It may be revalued to fair value with the revaluation gain going to net income, even if the recorded gain will exceed the original impairment loss.
• D) It may be revalued to fair value with the revaluation gain going to other comprehensive income, even if the recorded gain will exceed the original impairment loss.
• Bloom's

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Definitions:

Group Treatment

A therapeutic approach involving treating multiple clients simultaneously in a group setting, fostering shared experiences and collective healing.

Dialectical Behavior Therapy

A cognitive-behavioral therapy designed to help people change patterns of behavior that are not helpful, such as self-harm, suicidal ideation, and substance abuse, through the acquisition of skills in mindfulness, distress tolerance, emotion regulation, and interpersonal effectiveness.

Dialect

A particular form of a language which is peculiar to a specific region or social group.

Acceptance

The act of recognizing and welcoming facts or conditions as they are without attempting to change them.