Multiple Choice
Which method of accounting will generally be used when one company purchases less than 20% 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) Either the fair value method or the equity method may be used,depending upon the relationship between the companies.
D) Only the acquisition method.
Correct Answer:

Verified
Correct Answer:
Verified
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