If a company uses the equity method to account for an investment in another company, which of the following is true?

How can sole proprietorship, corporate and limited ability have an impact on the financial statement? How does each one of them might raise capital?

n reference to intercompany transactions between an investor and an investee, when the investor can significantly influence the investee, which of the following statements is correct, assuming that the investor is using the equity method? Question 9Answer a. As long as the investor recognizes the effects of the transaction in its financial statements, it is notrequired to provide any additional disclosures. b. In reporting its share of earnings and losses of an investee, the investor must eliminate the effect of profits and losses on the intercompany transactions until they are realized. c. None of the others are correct. d. There is the presumption of arms-length bargaining between the related parties.

Which of the following has no affect on the Accumulated Adjustments Account (AAA) and stock basis of a shareholder of an 5 Corporation? Ordinary Income. Cost Of Goods Sold. O Long-Term Capital Gain. Repayment of loan by the S Corporation made by a shareholder.