Which of the Following Results in an Increase in the Equity

question 61

Multiple Choice

Which of the following results in an increase in the Equity in Investee Income account when applying the equity method?

• A) Amortizations of purchase price over book value on date of purchase.
• B) Amortizations, since date of purchase, of purchase price over book value on date of purchase.
• C) Extraordinary gain of the investor.
• D) Unrealized gain on intra-entity inventory transfers for the prior year.
• E) Sale of a portion of the investment at a loss.

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Definitions:

Hostile Expectation Bias

The tendency to anticipate hostility or aggression from others, which can color perceptions and interactions.

Accidentally Bumped

An unintended or unexpected physical contact with someone or something, typically by mistake or without intention.

React Aggressively

The tendency to respond to situations or stimuli with anger, hostility, or violent behavior rather than through peaceful or rational means.

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.