_____ In the absence of knowing whether the parent has guaranteed any of the subsidiary's debt, a parent company using the equity method will consider when it is absolutely necessary to temporarily discontinue application of the equity method when the

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The equity method may be temporarily discontinued when the investment's carrying amount is reduced to zero and the investor has no obligation to fund the investee's losses. If the subsidiary's equity becomes negative, it indicates that the investor's share of the subsidiary's losses has exceeded the carrying amount of the investment, potentially leading to a discontinuation of the equity method until the situation is rectified.

_____ in the Absence of Knowing Whether the Parent Has