Joint venture using the equity method

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Reference no: EM131319058

During the early 1990’s Mylan had a 50% interest in a company which produced and sold a very successful drug for the treatment of Parkinson’s disease. We accounted for this joint venture using the equity method. Which of the following is correct regarding Mylan’s financial statements: ...... and please explain.

A. Return on assets and Profit Margin were disproportionately low because of the JV.

B. Return on assets and profit margin were disproportionately high because of the JV.

C. Return on assets was disproportionately low but profit margin was disproportionately high.

D. Return on assets was disproportionately high but profit margin was disproportionately low.

Reference no: EM131319058

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