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kayla lanzotti
on Nov 18, 2024

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Accounting for the sale of stock is the same for both the fair value and the equity methods of accounting for investments.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.

  • Comprehend the accounting methods and documentation for different investment categories, such as securities held to maturity, securities for trading, and investments in equity.
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Lyndsay BilbreyNov 20, 2024
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