Which one of the following items,originally recorded in the Investment in Falcon Co.account under the equity method,would not be systematically used to reduce investment income on a periodic basis?

Question

Quizplus · Accepted Answer

Amortization expense of goodwill is not systematically used to reduce investment income on a periodic basis as it represents a non-cash expense and is not directly related to the operations of Falcon Co. The other three options (B, C, and D) all represent tangible assets that are subject to depreciation or amortization and would therefore be systematically used to reduce investment income on a periodic basis.

Which One of the Following Items,originally Recorded in the Investment