Under the Partial Equity Method of Accounting for an Investment

question 100

Multiple Choice

Under the partial equity method of accounting for an investment,

• A)The investment account remains at initial value.
• B)Dividends received are recorded as revenue.
• C)Amortization of the excess of fair value allocations over book value of net assets is applied over their useful lives to reduce the investment account.
• D)Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account.
• E)Dividends received increase the investment account.

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