When the Investor's Level of Influence Changes, It May Be

question 170

Multiple Choice

When the investor's level of influence changes, it may be necessary to change from the equity method to another method. When the level of ownership falls from a range of 20% to 50% to less than 20%, the equity method typically would be discontinued and the investment account balance would be carried over at:

• A) Amortized cost on the date of ownership change.
• B) Fair value on the date of ownership change.
• C) Discounted present value on the date of ownership change.
• D) The current balance, and this balance would serve as the new "cost."

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Definitions:

Roman House Plan

The architectural layout characteristic of ancient Roman domestic buildings, often featuring a central courtyard (atrium) surrounded by various rooms.

Caldarium

The hot-bath section of a Roman bathing establishment.

Triclinium

The dining room of a Roman house, characterized by three couches around a central table, used for reclining at meals.

Forum of Augustus

An ancient Roman square, built by Emperor Augustus, that included the Temple of Mars Ultor in Rome.