Question: The equity method is usually used for long term investments Do
“The equity method is usually used for long-term investments.” Do you think this is appropriate? Explain.
Answer to relevant QuestionsContrast the market method with the equity method. When is there justification for not consolidating majority-owned subsidiaries? What criterion is used to determine whether a parent–subsidiary relationship exists? Are U.S. GAAP and IFRS the same or different? Explain. You recently hired a young MBA who advises you to grow more aggressively and who suggests that you should do so by acquiring other small companies. Your cookware and tableware importing business has been quite successful, ...Tomasco and Wooten Companies had the following balance sheets at December 31, 20X8 ($ in thousands):On January 1, 20X9, Tomasco purchased 100% of the common stock of Wooten for $225,000. 1. Prepare a balance sheet for ...
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