Question: 3. ABC Company uses the equity method to report its investment in 25% of the stock of XYZ Company. Its original investment cost exceeded 25%

3. ABC Company uses the equity method to report its investment in 25% of the stock of XYZ Company. Its original investment cost exceeded 25% of the book value of XYZ by a large amount. ABC is computing equity in net income of XYZ, for the current year, which is five years after the acquisition. Which situation below requires ABC to adjust the equity in net income number for write-offs of the difference between investment cost and XYZ's book value? Attribute the difference to goodwill a. b. brand names with indefinite life. C. d. databases with a 3-year life. plant assets with a 20-year life

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