Discuss the appropriate accounting treatment to use when (a) An investor acquires enough additional common stock during

Question:

Discuss the appropriate accounting treatment to use when
(a) An investor acquires enough additional during a year to change from using the fair value method to using the equity method, and
(b) An investor using the equity method sells enough so that its portion of ownership falls below 20%.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...