Under the cost method, the investment account is reduced for the subsidiary's cumulative reported losses that exceed its cumulative reported profits.

Name: Under the cost method, the investment account is reduced for the subsidiary's cumulative reported losses that exceed its cumulative reported profits.
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Under the cost method, the investment account is not adjusted for the subsidiary's profits or losses; it remains at the original cost unless there are impairments or distributions received.

Under the Cost Method, the Investment Account Is Reduced for the Subsidiary's