Under the Equity Method, a Company Should Report an Unrealized

question 176

Multiple Choice

Under the equity method, a company should report an unrealized gain on a long-term investment:

• A) when the market price is greater than cost.
• B) when the market price is less than cost.
• C) if the investee stock has fallen below the investors cost.
• D) in no instance. No adjusting entry is made.