Piano Company Owns 55% of the Voting Common Stock Shares

Multiple Choice

Piano Company owns 55% of the voting common stock shares of Keys Corporation. Which of the following is true?

A) The investment would be accounted for using the equity method.
B) The investment would be accounted for by consolidation.
C) The investment would be accounted for under the fair value method.
D) The investment would be accounted for under the amortized cost methoD.An investment of more than 50% of the outstanding voting stock requires the parent company to use the consolidation method.