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Investments Accounted for Using the Equity Method Are Initially Recorded

Question 56

Multiple Choice

Investments accounted for using the equity method are initially recorded at:


A) cost
B) the total of the investee's equity accounts multiplied by the percentage of ownership acquired
C) the lower of the cost or fair market value as of the balance sheet date
D) fair market value of the investee company multiplied by the percentage of ownership acquired

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