The Main Pronouncement on Equity-Method Reporting,APB 19 (ASC 323 and 325)requires

question 28

Multiple Choice

The main pronouncement on equity-method reporting,APB 19 (ASC 323 and 325) requires all of the following except:

• A)The investor's share of the investee's extraordinary items should be reported.
• B)The investor's share of the investee's prior-period adjustments should be reported.
• C)Continued use of the equity-method even if continued losses results in a zero or negative balance in the investment account.
• D)Preferred dividends of the investee should be deducted from net income before the investor computes its share of investee earnings.