Under the partial equity method of accounting for an investment,
A) The investment account remains at initial value.
B) Dividends received are recorded as revenue.
C) The allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account.
D) Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account.
E) Dividends received increase the investment account.

Question

Quizplus · Accepted Answer

The Answer of Under the partial equity method of accounting for an investment,
A) The investment account remains at initial value.
B) Dividends received are recorded as revenue.
C) The allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account.
D) Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account.
E) Dividends received increase the investment account.

Under the Partial Equity Method of Accounting for an Investment