Company B has strategic investment in Company A. Company B owns 5% of the common shares of A and it does NOT have influence over A. How should an increase in the fair value of common shares of A company be reported in B's books?
A) The Investment in A should be shown at unamortized cost on B's Balance Sheet.
B) The Investment in A should be shown at cost on B's Balance Sheet.
C) The investment in A should be shown at fair value on the Balance Sheet of B.
D) The Investment in A should be shown at the net realizable value on B's Balance Sheet.
Correct Answer:
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