Equity Method: Equity method is the process of treating investment in associate company. Equity method is applied when an investor entity hold 20-50% of voting stock of the associate company. To prepare : Trial balance for D’s company and prepare all the elimination & adjusting entries necessary to prepare consolidated financial statement.

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Chapter 11, Problem 11.7P

To determine

Equity Method:

Equity method is the process of treating investment in associate company. Equity method is applied when an investor entity hold 20-50% of voting stock of the associate company.

To prepare: Trial balance for D’s company and prepare all the elimination & adjusting entries necessary to prepare consolidated financial statement.

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