Is it possible to tell if the parent is using the equity method in recording its ownership of each subsidiary?

The      reporting treatment for investments in common stock depends on the level      of ownership and the ability to influence the investee’s policies. The      reporting treatment may even change over time as ownership levels or other      factors change. When investees are not consolidated, the investments      typically are reported in the Investments section of the investor’s      balance sheet. However, the investor’s income from those investments is      not always easy to find in the investor’s income statement.

1. How       does Chevron Corporation account for its investments in affiliated       companies? 
2. How       does the company account for issuances of additional stock by affiliates       that change the company’s proportionate dollar share of the affiliates’       equity? 
3. How       does Chevron treat a difference associated with an equity-method       investment? 
4. How       does Chevron account for the impairment of an equity investment?
5. A      clerk in the accounting department recently entered trial balance data for      the parent company and its subsidiaries in the company’s consolidation      program. After a few minutes of additional work needed to eliminate the      intercompany investment account balances, the clerk expressed his/her      satisfaction with having completed the consolidation worksheet. In      reviewing the printout of the consolidation worksheet, other employees      raised several questions, and you have been asked to respond to them.      Indicate whether each of the following questions can be answered by      looking at the data in the consolidation worksheet or not, and also      indicate why or why not.
   1. Is       it possible to tell if the parent is using the equity method in recording       its ownership of each subsidiary?
   2. Is       it possible to tell if the correct amount of consolidated net income has       been reported?
   3. One       of the employees thought the parent company had paid well above the fair       value of net assets for a subsidiary. Is it possible to tell by reviewing       the consolidation worksheet?
   4. Is       it possible to determine from the worksheet the percentage ownership of a       subsidiary held by the parent?

Include in bold type in your initial response the above question(s) you are answering.

Chapters 4 & 5 in Advanced Financial Accounting

Chapter 4 & Chapter 5 in Advanced Financial Accounting, PowerPoint presentations

Christensen, T., Cottrell, D., & Budd, C. (2019). Advanced financial accounting (12th ed.). New York, NY: McGraw-Hill.