Summarize concepts from the first 3 chapters. What have you learned? I would like to see...

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Accounting

Summarize concepts from the first 3 chapters. What have youlearned? I would like to see summary of:
1. Chapter 1: Equity method (new account titles, how accountbalances change for each)
2. Chapter 2: List the 3 types of business combinations anddefine them. Define acquisition method Also list the first 2consolidation entries for acquisitions.
3. Chapter 3: What are the 3 methods parents can use to recordinvestment in subsidiary? What are the consolidation entries foreach method?

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Equity Method The equity method is an accounting techniqueused by firms to assess the profits earned by their investments in other companies The firm reports the income earned on the investment on its income statement and the reported value is based on the firms share of the company assets BREAKING DOWN Equity Method The equity method is the standard technique used when one company has a significant investment in another When a company holds approximately 20 or more of another companys stock it is considered to have significant control which signifies the power one company can exert over another This power includes representation on the board of directors partaking in policy development and the interchanging of managerial personnel If a firm owns 25 of a company with a 1 million net income the firm reports earnings under the equity method of 250000 When the equity method is used to See Answer

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Summarize concepts from the first 3 chapters. What have youlearned? I would like to see summary of:1. Chapter 1: Equity method (new account titles, how accountbalances change for each)2. Chapter 2: List the 3 types of business combinations anddefine them. Define acquisition method Also list the first 2consolidation entries for acquisitions.3. Chapter 3: What are the 3 methods parents can use to recordinvestment in subsidiary? What are the consolidation entries foreach method?