When an Enterprise Increases Its Interest in an Investment in Equity

question 66

Multiple Choice

When an enterprise increases its interest in an investment in equity securities accounted for by the fair value method,and changes to the equity method,what is the initial carrying value for purposes of subsequent application of the equity method?

• A) Book value at the date of the change
• B) Original cost plus or minus the net market value change since acquisition
• C) Market value at the date of the change
• D) The amount that would be reflected in the investment account had the equity method been in use continually since the purchase of the securities

Comprehend the inherent characteristics of services such as intangibility, inseparability, and variability.

Understand methods for managing service inconsistencies and improving service delivery.

Identify the challenges of idle production capacity and strategies for managing demand fluctuations.

Appreciate the continuum of offerings between tangible products and intangible services.

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Definitions:

Gynecomastia

Enlargement of breast tissue in males.

Klinefelter Syndrome

A genetic condition affecting males, characterized by an extra X chromosome, and associated with symptoms like reduced fertility.

XYY Syndrome

A chromosomal disorder where males have an extra Y chromosome, often associated with tall stature and sometimes with learning difficulties and behavioral issues.

Down's Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by developmental delays and distinctive physical features.