Under the equity method,if the investee company has a net loss,then the investor company will:
A)debit the Equity-Method Investment account for their share of the net loss.
B)credit the Unrealized Loss on Equity-Method Investment account for their share of the net loss.
C)credit the Equity-Method Investment account for their share of the net loss.
D)debit the Unrealized Loss on Equity-Method Investment.

Question

Quizplus · Accepted Answer

Under the equity method, the investor company must reduce the carrying amount of the investment by crediting the Equity-Method Investment account for their share of the investee's net loss.

Under the Equity Method,if the Investee Company Has a Net