The Cost Method of Accounting for Investments in Stock Should

Multiple Choice

The cost method of accounting for investments in stock should be employed when the

A) investor owns more than 50% of the investee's stock.
B) investor has significant influence on the investee and the stock held by the investor are marketable equity securities.
C) market value of the shares held is greater than their historical cost.
D) investor's influence on the investee is insignificant.