What are the two methods for accounting for passive equity investments? Explain how the methods differ in

Question:

What are the two methods for accounting for passive equity investments? Explain how the methods differ in valuing investments on the balance sheet. Explain how the methods differ in their treatment of gains and losses. How is income treated under the two methods?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...