Discussion: Cost and Equity Method, Consolidation
1. What types of investments in common stock are accounted for using (a) the equity method and (b) the cost method? How is the receipt of a dividend treated under the equity method? How is the receipt of a dividend treated under the cost method?
2. Review the financial statements of a well-known public company and comment on their investments as reported in their Form 10-K. You should list the different type of investments, percentage ownership, and method of accounting for the investments
Annual reports of public companies can be found on the SEC website. https://www.sec.gov/