The main pronouncement on equity-method reporting,APB 19 (ASC 323 and 325)requires all of the following except:
A)The investor's share of the investee's extraordinary items should be reported.
B)The investor's share of the investee's prior-period adjustments should be reported.
C)Continued use of the equity-method even if continued losses results in a zero or negative balance in the investment account.
D)Preferred dividends of the investee should be deducted from net income before the investor computes its share of investee earnings.

Question

Quizplus · Accepted Answer

The equity method should be discontinued if the investment account balance becomes zero or negative due to continued losses.

The Main Pronouncement on Equity-Method Reporting,APB 19 (ASC 323 and 325)requires