Multiple Choice
Which of the following is true with regard to how to account for company A's investment in company B's common stock?
A) The fair value method is used when A owns more than 50% of B.
B) The equity method is used when A owns from 20% to 50% of B.
C) The consolidation method is used when A owns less than 20% of B.
D) All of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
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