Asked by
venxel bantilan
on Oct 17, 2024
Verified
If the investor sells part of its stake in an associate, accounted for using the equity method, which of the following is used to calculate the gain or loss on the sale of these shares?
A) The average carrying amount of the investment
B) The FIFO method
C) The LIFO method
D) The specific identification method
Specific Identification Method
An inventory costing method that tracks the actual cost of each specific item in inventory until it is sold.
- Calculate and record gains or losses on the sale of equity investments.
Verified Answer
BK
Learning Objectives
- Calculate and record gains or losses on the sale of equity investments.