Investments in Stock
Investment B Co C/S 80,000
Investment Income 80,000
Cash 12,000
Investment B Co C/S 12,000
- Note: Carrying value of the Investment account will vary.
- Please review the expanded illustration of the Equity Method, especially if investment cost is not equal to investor proportional share of the underlying investee book value (must amortize over/under to investment in investee). Review disclosure under the Equity Method.