For Non-Consolidated Subsidiaries Where the Parent Owns Less Than a Majority

Multiple Choice

For non-consolidated subsidiaries where the parent owns less than a majority interest but more than a 20 percent interest,

A) the equity method is used by a majority of corporations worldwide.
B) the equity method must be used by U.S. companies.
C) the cost method recognizes income when earned by the subsidiary.
D) the equity method recognizes income when a dividend is received by the parent.