Question: 1. How is revenue recognized using the equity method? Provide FASB ASC references as support. 2. How would revenue be recognized if the fair value

1. How is revenue recognized using the equity method? Provide FASB ASC references as support.

2. How would revenue be recognized if the fair value option was applied? Provide FASB ASC references as support.

3. What types of disclosures will be needed if the fair value option is selected? Provide FASB ASC references as support.

4. Which method would investors find more decision useful? A complete response will consider aspects of relevance, reliability

5. How would the method selected likely affect the stock price that would be received in the initial public offering? A complete answer will consider investor decision theory.

6. Your conclusion should address which accounting method you believe would provide investors with the best information for evaluating the company.

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