When is the equity method used to account for long-term investments in common stock?
A) When the investment is between 20% and 50% of the voting stock, regardless of whether or not significant influence can be achieved.
B) When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved.
C)When the investment is greater than 50% of the voting stock and significant influence can be achieved.
D)When the investment is between 20% and 50% of the voting stock and significant influence can be achieveD.The investment must be between 20% and 50% of the voting stock and significant influence must be achieved.

Question

Quizplus · Accepted Answer

The Answer of When is the equity method used to account for long-term investments in common stock?
A) When the investment is between 20% and 50% of the voting stock, regardless of whether or not significant influence can be achieved.
B) When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved.
C)When the investment is greater than 50% of the voting stock and significant influence can be achieved.
D)When the investment is between 20% and 50% of the voting stock and significant influence can be achieveD.The investment must be between 20% and 50% of the voting stock and significant influence must be achieved.

When Is the Equity Method Used to Account for Long-Term