Use of the equity method is required for investments between 20 and 50% of a company's common stock regardless of the investor's ability to influence the investee.

Question

Quizplus · Accepted Answer

The equity method is required to be used only when an investor has the ability to exert significant influence over the investee, a 20 to 50% investment doesn't guarantee significant influence.

Use of the Equity Method Is Required for Investments Between