The equity method should generally be used to account for an investment in shares when the level of ownership is
A) less than 10%.
B) between 10% and 20%.
C) 20% or more.
D) 10% or more.

Question

Quizplus · Accepted Answer

The equity method is typically used when an investor has significant influence over the investee, which is generally presumed when ownership is 20% or more.

The Equity Method Should Generally Be Used to Account for an Investment