When Is the Equity Method Used to Account for Long-Term

Multiple Choice

When is the equity method used to account for long-term investments in common stock?

A) When the investment is between 20% and 50% of the voting stock, regardless of whether or not significant influence can be achieved.
B) When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved.
C) When the investment is greater than 50% of the voting stock and significant influence can be achieved.
D) When the investment is between 20% and 50% of the voting stock and significant influence can be achieveD.The investment must be between 20% and 50% of the voting stock and significant influence must be achieved.