Company A sells its investment in Company B for \$1,500,000. The book value of the investment is \$1,200,000. What is the journal entry for the sale?

Why is it important to maintain accurate ownership percentages in equity method accounting?

Company A purchases 30,000 shares of Company B's 100,000 outstanding shares at \$20 per share. What is the initial investment cost and the journal entry?

What role do ownership percentages play in the equity method of accounting?

If an investee reports a net loss of \$300,000 and the investor owns 25% of the investee, how is the investment account affected?

How is the equity method investment account similar to retained earnings?

If an investee reports a net loss of \$200,000 and the investor owns 30% of the investee, how is the investment account affected?

Which of the following statements best describes the difference between the equity method and consolidation accounting?

If an investee reports a net income of \$500,000 and the investor owns 25% of the investee, what is the investment income?

Company Z sells its investment in Company W for \$900,000. The book value of the investment is \$1,000,000. What is the journal entry for the sale?