When applying the equity method, how is the excess of cost over - 12315

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yousafbhutta

yousafbhutta

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6. When applying the equity method, how is the excess of cost over book value accounted for?  (Points : 1)
        The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of current assets
        The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of total assets
        The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of net assets
        The excess is allocated to goodwill
        The excess is ignored


Solution Description

6. When applying the equity method, how is the excess of cost over book value accounted for?  (Points : 1)
        The excess is allocated to the diffe