The main guidance on equity-method reporting,found in ASC 323 and 325 requires all of the following except:
A) The investor's share of the investee's discontinued operations should be reported.
B) The investor's share of the investee's prior-period adjustments should be reported.
C) Continued use of the equity-method even if continued losses result in a zero or negative balance in the investment account.
D) Preferred dividends of the investee should be deducted from net income before the investor computes its share of investee earnings.
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