What Method of Accounting Will Generally Be Used When One

Multiple Choice

What method of accounting will generally be used when one company purchases between 20% to 50% of the outstanding stock of another company?

A) Only the fair value method may be used.
B) Only the equity method may be used.
C) The GAAP prescribed the equity method may be used.
D) Neither the fair value method nor the equity method may be used,regardless of the level of ownership.