Under the Equity Method, If the Investee Company Has a Net

question 67

Multiple Choice

Under the equity method, if the investee company has a net loss, then the investor company will:

• A) debit the Investment account for their share of the net loss.
• B) credit the Loss on Sale of Investment account for their share of the net loss.
• C) credit the Investment account for their share of the net loss.
• D) debit or credit the Investment account based on market value.

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