The Available-For-Sale Method (Market Value Method) of Accounting for Long-Term

Multiple Choice

The available-for-sale method (market value method) of accounting for long-term investments in stock should be used when the:

A) investor owns more than 50% of the investee's stock.
B) investor has significant influence over the investee's operating decisions and policies.
C) investor has little or no influence on the investee.
D) investor is a parent company.