Which of the following stock investments should be accounted for using the fair value method?
A) investments of less than 20%
B) investments between 20% and 50%
C) investments of less than 20% and investments between 20% and 50%
D) all stock investments should be accounted for using the fair value method

Question

Quizplus · Accepted Answer

Investments of less than 20% in another company's stock are typically accounted for using the fair value method, as the investor does not have significant influence over the investee.

Which of the Following Stock Investments Should Be Accounted for Using