Accounting for the sale of stock is the same for both the fair value and the equity methods of accounting for investments.

Question

Quizplus · Accepted Answer

Whether using the fair value method or equity method of accounting for investments, the sale of stock would be recognized in the same way on the financial statements. The difference between the two methods is how the initial investment is recorded and how subsequent changes in value are recognized.

Accounting for the Sale of Stock Is the Same for Both