Question: A change from the equity method to the cost method of accounting for an investment in common stock due to a decrease in the number

A change from the equity method to the cost method of accounting for an investment in common stock due to a decrease in the number of shares held by the investor requires:

a) Retroactive restatement as if the investor always hadused the cost method.

b) Requires an adjustment to beginning retained earnings.

c) That the cumulative amount of the change be shown as a line item on the income statement net of tax

d) The change be accounted for currently and prospectively.

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