Question: Consistent with U.S. GAAP, Wendys uses the equity method to account for its joint with Tim Hortons. Briefly explain this accounting method. In your answer,

Consistent with U.S. GAAP, Wendys uses the equity method to account for its joint with Tim Hortons. Briefly explain this accounting method. In your answer, be sure to comment on how the investing company accounts for its initial investment and any subsequent income and dividend activity of its investee. (note: Wendys footnote also includes an investment in Brazil JV)

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