Under the market method,the investment in another company's stock is recorded at acquisition cost and is adjusted for the investor's share of dividends and for any earnings or losses experienced by the investee after the date of investment.

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Under the market method, also known as the fair value method, the investment in another company's stock is recorded at acquisition cost but is subsequently adjusted to its fair value at each reporting date, not for the investor's share of dividends or for any earnings or losses experienced by the investee. Dividends received are recognized as income.

Under the Market Method,the Investment in Another Company's Stock Is