The Main Guidance on Equity-Method Reporting,found in ASC 323 and 325

Multiple Choice

The main guidance on equity-method reporting,found in ASC 323 and 325 requires all of the following except:

A) The investor's share of the investee's extraordinary items should be reported.
B) The investor's share of the investee's prior-period adjustments should be reported.
C) Continued use of the equity-method even if continued losses results in a zero or negative balance in the investment account.
D) Preferred dividends of the investee should be deducted from net income before the investor computes its share of investee earnings.