Concept introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20 % − 50 % of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting. To calculate: The equity and the fair value method.

Question

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Answer 1

Question

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

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Answer 2

Question

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

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Answer 3

Question

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

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Answer 4

Question

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Answer 6

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Answer 7

Chapter 2, Problem 2.4E

a.

To determine

Concept introduction

In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Answer 8

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Answer 9

b.

To determine

Introduction In the organization, there are two important methods to calculate one’s accounts. The equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%−50% of the firm assets while the fair value method is used when the accounts are rational and unbiased in the balance sheet of reporting.

To calculate: The equity and the fair value method.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 2 - What types of investments in common stock normally...Ch. 2 - Prob. 2.2Q Ch. 2 - Describe an investor’s treatment of an investment...Ch. 2 - How is the receipt of a dividend recorded under...Ch. 2 - How does carrying securities at fair value...Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 2.10Q

Solution Summary: The author explains that the equity method is used when the investor has acquired more reliable resources and gains profit shares by owning 20%50% of the firm assets.

Concept explainers

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Chapter 2 Solutions