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This is a Kaplan CPA Review Question) An investor uses the equity method to account for its 30% investment in common stock of an investee.

Note: This is a Kaplan CPA Review Question)

An investor uses the equity method to account for its 30% investment in common stock of an investee. Amortization of the investor’s share of the excess of fair value over book value of depreciable assets should be reported in the investor’s income statement as part of

-Amortization of goodwill.

-Other expense.

-Depreciation expense.

-Income from investee.

 
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