If an investment accounted for using the equity method suffers an impairment loss and the value in use of the investment subsequently recovers, what accounting entry should be made?
A) None; once an investment has been written down, it cannot subsequently be written up.
B) It may be written up in value but not more than the amount of the impairment loss that was recorded at the time of impairment.
C) It may be revalued to fair value with the revaluation gain going to net income, even if the recorded gain will exceed the original impairment loss.
D) It may be revalued to fair value with the revaluation gain going to other comprehensive income, even if the recorded gain will exceed the original impairment loss.
Correct Answer:
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