Under the equity method of accounting for an

25. Under the equity method of accounting for an investment,
A. The investment account remains at initial value.
B. Dividends received are recorded as revenue.
C. Goodwill is amortized over 20 years.
D. Income reported by the subsidiary increases the investment account.
E. Dividends received increase the investment account.
26. Under the partial equity method of accounting for an investment,

27. Under the initial value method, when accounting for an investment in a subsidiary,
28. According to GAAP regarding amortization of goodwill and other intangible assets, which of the
following statements is true?
29. When a company applies the initial method in accounting for its investment in a subsidiary and the
subsidiary reports income in excess of dividends paid, what entry would be made for a consolidation
worksheet?
A. A above
B. B above
C. C above
D. D above
E. E above
30. When a company applies the initial value method in accounting for its investment in a subsidiary and
the subsidiary reports income less than dividends paid, what entry would be made for a consolidation
worksheet?

31. When a company applies the partial equity method in accounting for its investment in a subsidiary and
the subsidiary's equipment has a fair value greater than its book value, what consolidation worksheet
entry is made in a year subsequent to the initial acquisition of the subsidiary?