When is the equity method not used to account for long-term investments in stocks?
A)When the investment is 30% of the voting stock and significant influence can be achieved.
B)When the investment is 15% and significant influence can be achieved.
C)When the investment is greater than 50% of the voting stock and control is achieved.
D)When the investment is 40% of the voting stock and significant influence can be achieved.

Question

Quizplus · Accepted Answer

The investment must be less than or equal to 50% of the voting stock and significant influence must be achieved.

When Is the Equity Method Not Used to Account for Long-Term