Under the Equity Method,if an Equity-Method Investment Is Sold at a Gain,the

question 87

Multiple Choice

Under the equity method,if an Equity-Method Investment is sold at a gain,the gain is:

• A)reported as operating revenue on the income statement.
• B)reported on the balance sheet as an adjustment to Accumulated Other Comprehensive Income.
• C)reported in the Other Revenue and Gain section of the income statement.
• D)reported as Other Comprehensive Income on the Statement of Comprehensive Income.

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Definitions:

Weighted Average Model

A mathematical method that takes into account different weights or importance levels assigned to various components or data points when calculating the average.

Forecast Values

Predicted amounts or outcomes estimated for future periods based on historical data and analysis models.

Gaming Console Sales

The total revenue or number of units sold from video game consoles, a key indicator of the gaming industry's performance and consumer preferences.

Mean Square Error

It measures the average of the squares of the errors that is, the average squared difference between the estimated values and the actual value.