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Equity and Cost Methods

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What are the advantages/ disadvantages of both the equity and cost methods?

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Solution Summary

This solution briefly lists the advantages and disadvantages of both the equity and cost methods in 67 words.

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Cost Method:

Pros:

Minimal G/L bookkeeping by parent.
Simple consolidation procedures.

Cons:
Overly conservative valuation.
Parent ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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