1) When a between 20% and 50% of the outstanding stock of an investee, which of the ?
A. The investor should use the to account for its investment unless circum-stances indicate that it is unable to exercise “significant influence” over the investee
B. The investor should always use the equity method to account for its investment
C. The investor must use the unless it can clearly demonstrate the ability to exercise “significant influence” over the investee
D. The investor should always use the fair value method to account for its investment
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The outstanding stock of an investee
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