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  3. Study Set
    Financial Accounting for Decision Makers
  4. Exam
    Exam 14: Appendix B: Accounting for Investments and Consolidated Financial Statements
  5. Question
    Under the Equity Method, If the Fair Market Value of the Investee
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Under the Equity Method, If the Fair Market Value of the Investee

Question 27

Question 27

True/False

Under the equity method, if the fair market value of the investee company increases, and the increases are deemed other-than-temporary, the book value of the investment on the investor's balance sheet is adjusted upward to reflect the increase in value.

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