Long term equity investments are disposed of by U.S. guidelines

That's great, you can earn money this way.

Entries at the time of purchase.

Borrow: Long-term equity investment 2100

Credit: Bank deposit 2000

Non-operating income 100

Realize profits. Borrow: Long-term equity investment 150

Credit: Investment income 150

Therefore, d (100+150) should be chosen

Note: If the initial cost of a long-term equity investment is less than the fair value share of the investee's identifiable net assets at the time of investment, the difference shall be included in the profit or loss (non-operating income) for the current period. 7000*30%=2100 is greater than 2000, so 100 should be included in non-operating income.

This is a rule, when you buy it at a cost greater than what you should enjoy, you will not adjust it. If it is less than that, the difference will be recorded as non-operating income.

a. If the long-term equity investment is converted from the cost method to the equity method, the book value of the long-term equity investment at the time of conversion shall be used as the initial investment cost accounted for by the equity method.

Correct, the initial investment cost of the cost method and the equity method is the same, and both are the initial cost paid.

The correct approach should be: when disposing of a long-term equity investment, the difference between the book value of the long-term equity investment after deducting the impairment provision from the book balance of the long-term equity investment and the actual purchase price shall be included in the profit or loss of the current investment. There is no need to write off asset impairment losses. The accounting entries are:

Borrow: Bank deposit.

Borrow: Provision for impairment of long-term equity investments.

Borrowing: Investment income.

Credit: Long-term equity investment.

When a long-term equity investment is impaired, the relevant impairment loss has been recognized and included in the current profit or loss through the asset impairment loss account; At the time of disposal, only the difference between the residual value of the long-term equity investment and the actual acquisition price shall be treated as investment profit or loss.

As mentioned in the question, when the long-term investment is impaired, the impairment loss is recognized. When a long-term equity investment is disposed of, the previously recognized impairment loss is reversed. The carrying amount after reversal (equivalent to the amount that has not been impaired since the beginning) and the actual price obtained are recognized as investment gains or losses.

In this way, the significance of recognizing impairment losses on long-term investments in the first place is lost.

Moreover, according to the new standard, once the loss of long-term equity investment is recognized, it cannot be reversed. Therefore, the argument in the question is wrong.

When an enterprise disposes of a long-term equity investment, it shall carry forward the carrying amount of the long-term equity investment corresponding to the equity sold, and the difference between the proceeds and the carrying amount of the disposal of the long-term equity investment shall be recognized as a profit or loss on disposal.

1. General entries for the disposal of long-term equity investments under the cost method.

Borrow: Bank deposit.

Provision for impairment of long-term equity investments.

Credit: Long-term equity investment.

Investment income (inverted squeeze).

2. General entries for the disposal of long-term equity investments under the equity method.

Borrow: Bank deposit.

Provision for impairment of long-term equity investments.

Capital reserve - other capital reserve (if it is a debit balance, it should be written off on the credit side) Loan: long-term equity investment investment cost.

Profit and loss adjustments. Changes in other equity (if credit balances, should be written off on the debit side) and investment income (squeeze).

Investment income is the net income from profits, dividends and bond interest obtained from foreign investment minus investment losses. Strictly speaking, the so-called investment income refers to the monetary income with the project as the boundary.

Under the equity method, the carrying amount of a long-term equity investment is affected by changes in the owner's equity of the investee. Because the book value of long-term equity investment needs to be adjusted according to the owner's equity of the investee. As long as there is a change in the owner's equity, the carrying amount of the investor's long-term equity investment must be adjusted accordingly.

Therefore, when the investee realizes profits, the retained earnings of the owner's equity increase, and the long-term equity investment of the investment unit should be increased, the investment income should be recognized, and the book value of the long-term equity investment should be reduced when a loss occurs. When the investee distributes cash dividends, the owner's equity of the investee decreases, so the long-term equity investment should be offset and the dividends receivable should be recognized. When there is a change in the other rights and interests of the investee, the book value of the long-term equity investment should also be adjusted.

The first statement is correct.

The disposition difference is included in "investment income".

Correct answer: c

Analysis: The difference between the disposal income of a long-term equity investment and the carrying amount of the investment at the time of disposal is included in investment income.

The difference between the book value and the actual purchase price of a long-term equity investment shall be included in the investment income.

This seems to be quite different from the new guidelines.