Control of a Subsidiary Was Achieved with the Initial Investment

Multiple Choice

Control of a subsidiary was achieved with the initial investment in subsidiary stock.When a subsequent block of subsidiary's stock is purchased

A) ​the parent must change from the cost method to the equity method.
B) ​the parent must change from the equity method to the cost method.
C) ​no change in accounting methods is required.
D) ​none of the above.