cost & equity method

Question 1

if you are at 20% ownership, what factors to consider using the equity method are:

Answer 1

1) Significant intercompany transactions or technological dependency.
2) Officers of the investor serving as officers or board members of the investee.
3) Investor is a major customer or supplier of the investee.
4) The investor owns at least 20% of the voting stocking of the investee(but not if another shareholder or small voting block owns a majority and exercise total control)
5) The investor has definite plans to acquire additional stock in the future to bring their interest up to at least 20%.

Question 2

Under equity method, 
PP&E
Inventory
Land
Goodwill

Answer 2

PP&E – Depreciated
Inventory - written off when sold
Land _ not depreciated but written off when sold
Goodwill - not amortized but impairment losses recognized.