Which of the following is true regarding the change from the fair-value method to the equity method?
A) Dodge must record a debit to additional paid-in capital in the amount of $200,000.
B) Dodge must record a debit to additional paid-in capital for $15,000.
C) Dodge must retrospectively apply the equity method to interests reported under the fair-value method.
D) Dodge must record a debit of $200,000 to the Gates Investment Account.
E) Dodge must record a credit of $15,000 to the Gates Investment Account.
Correct Answer:
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