When the equity method is used to account for stock investments, the carrying value of an investment is the fair value as of the balance sheet date.

Name: When the equity method is used to account for stock investments, the carrying value of an investment is the fair value as of the balance sheet date.
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The carrying value of an investment under the equity method is based on the investor's share of the investee's net assets, not the fair value.

When the Equity Method Is Used to Account for Stock