Under the equity method, a company should report an unrealized gain on a long-term investment:

Name: Under the equity method, a company should report an unrealized gain on a long-term investment:
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Quizplus · Accepted Answer

Under the equity method, the investor does not adjust the investment to fair value. Instead, the investment is reported at cost adjusted for the investor's share of income or loss of the investee. Therefore, there is no unrealized gain or loss to recognize on the income statement.

Under the Equity Method, a Company Should Report an Unrealized