Under the equity method, the investment account is recorded at fair value but only if fair value exceeds original cost.

Name: Under the equity method, the investment account is recorded at fair value but only if fair value exceeds original cost.
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Under the equity method, the investment account is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses and dividends received, not fair value.

Under the Equity Method, the Investment Account Is Recorded at Fair