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When Is the Equity Method Not Used to Account for a Long-Term

Question 40

Multiple Choice

When is the equity method not used to account for a long-term investment in common stock?


A) When the investment is 30% of the voting stock and significant influence can be achieved.
B) When the investment is 18% and significant influence can be achieved.
C) When the investment is greater than 50% of the voting stock and control is achieved.
D) When the investment is 40% of the voting stock and significant influence can be achieved.

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