1.When would the equity method be used to account for a long-term investment in stocks? (Be specific with respect to the percentage ownership.)

2 Consider your answer to the previous question. Why wouldnt mark-to-market accounting be appropriate for such an investment? (Be specific.)

3 Reference the preceding questions. Why would the equity method never be appropriate for short-term investments in stocks? (Be specific.)

4 Briefly describe how an investments carrying value is determined if the equity method is being used.