Discontinued and the investment account balance


When the investor's level of influence changes, it may be necessary to change from the equity method to another method. When the level of ownership falls from a range of 20% to 50% to less than 20%, the equity method typically would be discontinued and the investment account balance would be carried over at:

A. Amortized cost on the date of ownership change.

B. Fair market value on the date of ownership change.

C. Discounted present value on the date of ownership change.

D. The current balance, and this balance would serve as the new "cost".

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Accounting Basics: Discontinued and the investment account balance
Reference No:- TGS090564

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