W4

Q1-Discussion # 1

When a parent company uses the equity method to account for an investment in a subsidiary, why do both the parent’s Net Income and Retained Earnings account balances agree with the consolidated totals?

Explain how this accounting is achieved in the parent's financial statements. Compare and contrast how the parent's Net Income and Retained Earnings accounts would be under the Equity versus the Cost (e.g., original acquisition cost where less than 20% of the common stock is acquired).

Q2 Video

Go to the American Institute of CPAs (AICPA) YouTube website: https://www.youtube.com/user/AICPAMultiMedia

Select any AICPA current topic recording and post a substantive discussion describing the contents of the video and what you learned from watching the AICPA at work.  Please include the URL to the video in your discussion post.

Q3 Presentation

Find a current accounting (no older than 2015) article related to the week's reading, and make a 10 slide PowerPoint presentation explaining the article.

APA format and a list of at least 3 References (include in the body of your presentation) are required.