Question: When is an investment accounted for by the equity method? Outline how to apply the equity method. Include in your answer how to record the

When is an investment accounted for by the equity method? Outline how to apply the equity method. Include in your answer how to record the purchase of the investment, the investor's proportion of the investee's net income, and receipt of a cash dividend from the investee. Indicate how a gain or loss on the sale of the investment would be measured.

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