What if purchases additional shares of common stock


Question: Select all that apply If an investor company, using the equity method, purchases additional shares of common stock of an investee company already held by the investor, which of the following are true about the treatment of the additional purchase in the books of the investor? The investor company will apply the equity method to the newly purchased shares from the date of acquisition. The investor company will treat the new and old stock separately. The investor company will add the cost of the new shares to the investment account. The income accruing from the new investment is recognized retrospectively from date of the original acquisition.

 

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Accounting Basics: What if purchases additional shares of common stock
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