Distinguish between the cost and equity methods of accounting for investments in stocks.

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Write a 700- to 1,050-word essay about investments.

Discuss the reasons that corporations invest in securities.

Distinguish between the cost and equity methods of accounting for investments in stocks.

A consolidated balance sheet reports the financial position of two or more legal entities just as if they were one reporting unit.

Explain why all the individual items appearing on the separate balance sheets of each of the affiliated companies cannot be added together to arrive at a consolidated total for each item.

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