Which of the Following Is True Regarding the Change from the Fair-Value

question 47

Multiple Choice

Which of the following is true regarding the change from the fair-value method to the equity method?

• A) Dodge must record a debit to additional paid-in capital in the amount of $200,000.
• B) Dodge must record a debit to additional paid-in capital for $15,000.
• C) Dodge must retrospectively apply the equity method to interests reported under the fair-value method.
• D) Dodge must record a debit of $200,000 to the Gates Investment Account.
• E) Dodge must record a credit of $15,000 to the Gates Investment Account.

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Definitions:

Lingual

Lingual pertains to the tongue, often regarding its anatomical structure, functions, or associated phenomena like lingual nerves or lingual tonsils.

Palatine

Pertaining to the palate, especially referring to bones or structures associated with the roof of the mouth.

Larynx

The voice box located in the throat, which contains the vocal cords and is involved in breathing, producing sound, and protecting the trachea against food aspiration.

Adam's Apple

The prominent protrusion in the neck, formed by the thyroid cartilage of the larynx, more prominent in males.