Equity Accounting
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How do use the Equity Method in Accounting?
How the heck do you use the Equity Method in Accounting? Can you give me an example problem of how I would use it? Thanks in advance 
This is a high level answer. The Equity Method is used to account for investmements made in another company or joint venture. Typically you use the method when you own 20-50% of the company and assert influence but not control which would require Consolidation.
From a journal entries perspective, you record the investment at cost. Each year you make adjustments based on the proportianate net income (increase in the cost basis) and dividends received (decrease in cost basis).
Accounting Basics 5- Stockholders Equity
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