Under the equity method, the carrying value of the investment represents the market value of the common stock holding.

Name: Under the equity method, the carrying value of the investment represents the market value of the common stock holding.
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Under the equity method, the carrying value of the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses and dividends received, not the market value of the common stock holding.

Under the Equity Method, the Carrying Value of the Investment