What reporting basis should the government use in reporting its investment in Turbine Corp., a government business enterprise, use?
A)Equity method.
B)Modified equity method.
C)Consolidation.
D)Cost method.

Question

Quizplus · Accepted Answer

The government should use the modified equity method for reporting its investment in a government business enterprise like Turbine Corp. This method reflects the government's share of the net income or loss of the enterprise.

What Reporting Basis Should the Government Use in Reporting Its