When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition:

Question

Brandon Walter

Social Studies

3 October, 22:01

When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition:

+1

Answers (1)

Know the Answer?

Adeline Watts · Answer 1

D.

Explanation:

Based on the information provided within the question it can be said that this would cause a reduction in the investment account and a reduction in the investment revenue. This is mainly due to the fact that the depreciation of an asset would cause it's value to be reduced which would in term reduce the revenue generated by that asset as well.