When Applying the Equity Method, How Is the Excess of Cost

question 80

Multiple Choice

When applying the equity method, how is the excess of cost over book value accounted for?

• A) The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of current assets.
• B) The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of total assets.
• C) The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of net assets.
• D) The excess is allocated to goodwill.
• E) The excess is ignored.

Utilize strategies for teaching relevant behaviors that are likely to be reinforced in natural settings.

Explain the importance and methods of planning for generalization.

Understand the concept of social validity and its application in generalization.

Describe the methods for promoting response maintenance.

---

Definitions:

Combined Equivalent Value

Refers to a singular value that encapsulates the total worth or effect of multiple financial elements combined.

Due Today

An obligation, often financial, that is required to be paid or settled on the current day.

Payment Streams

A series of payments made over a period of time, often in the context of loans, annuities, or investments.

Equivalent

A term used to denote items, quantities, or expressions that have the same value or function, even though they may appear different at first glance.