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    Cost and Equity Method

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    Identify and discuss the differences and similarities between the cost and equity methods of accounting.

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    https://brainmass.com/business/flow-to-equity/cost-equity-method-96386

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    Both are methods of accounting to record the investment.

    "Cost method is a method of accounting whereby the investment is recorded at cost. The income statement reflects income from the investment only to the extent that the investor receives distributions from accumulated net profits of the investee arising subsequent to the date of ...

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