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

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 15% 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.The investment must be 50% or less of the voting stock and the ability to exert significant influence must exist.