If a long-term investment in an equity security gives the investor significant influence over the investee, the investment is classified as available-for-sale.

Question

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If a long-term investment in an equity security gives the investor significant influence over the investee, the investment is classified as an equity method investment, not available-for-sale. Available-for-sale investments are those for which the investor has no significant influence over the investee.

If a Long-Term Investment in an Equity Security Gives the Investor