In about 200 words (total), answer one of the following questions What causes a gain or...

In about 200 words (total), answer one of the following questions

What causes a gain or loss on the sale of a bond investment?
When is the equity method the appropriate accounting for equity investments?
How does the accounting for a dividend received differ between the cost method and the equity method?

Expert Solution

1. What causes a gain or loss on the sale of a bond investment?

2. When is the equity method the appropriate accounting for equity investments?

3. How does the accounting for a dividend received differ between the cost method and the equity method?

Refer to the below images for the detailed explanation.

ekkarill92 answered 1 year ago

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