The treatment of equity investments depends on a number of factors,including:

Question

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The treatment of equity investments depends on whether the investee entity is in the life or general insurance industry and whether or not the investor has significant influence over the investee. These factors determine whether the investment should be accounted for using the equity method or fair value method. Therefore, choice D is the best answer. The date of purchase is not as relevant in determining the treatment of equity investments.

The Treatment of Equity Investments Depends on a Number of Factors,including