Equity method : Equity method is the method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company. To describe : The effect of the given situation on the investment account, when it is accounted by equity method

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Chapter 12, Problem 12.17Q

To determine

Equity method: Equity method is the method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To describe: The effect of the given situation on the investment account, when it is accounted by equity method

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