Record the full loss and report a negative balance

Reference no: EM132728418

Question 1: Record the full loss and report a negative balance in the investment account; continue to apply equity method accounting

Question 2: Record the full loss and report a negative balance in the investment account; apply initial value method going forward

Question 3: Record the full loss and report a negative balance in the investment account; apply the partial equity method going forward

Bring the investor investment account to zero and suspend equity method, until future income from investee offsets unrecorded losses
Bring investment account down to zero and continue using equity method for future earnings

Reference no: EM132728418

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