A change from carrying securities at fair value to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
A. retroactive restatement as if the investor always had used the equity method.
B. that the investor begins accruing income earned by the investee under the equity method at the date of acquisition of the new shares.
C. only a footnote disclosure.
D. that the cumulative amount of the change be shown as a line item on the income statement, net of tax.
Answer: B
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Acquisition of greater than 20% of the outstanding stock of a company normally suggests that the investor should use the
A) consolidation method. B) equity method. C) fair-value method. D) straight-line method.
Which skill is NOT listed as a beneficial skill for positive politics?
A. social astuteness B. interpersonal influence C. networking ability D. hygiene conduct
You should not use secondary data if
A) the researcher had a vested interest in the study's outcome. B) appropriate procedures were used to collect the data. C) the data reflects a high number of responses. D) the data is old but remains accurate and relevant. E) it is confirmed by several independent sources.
On May 1, Local Cartage Company and Modern Computers, Inc., orally agree that Local Cartage will pick up from National Chip Corporation and deliver to Modern Computers' manufacturing plant a certain number of computer chips on each Monday in May. Under the agreement, Modern Computers will pay for the delivery services on June 1. On May 1, is this contract express, implied in fact, or implied in law? On May 31, after all of the deliveries have been made, is the contract executed or executory?
What will be an ideal response?