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The equity method of accounting for a stock investment should generally be used when the investor ...

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The equity method of accounting for a stock investment should generally be used when the investor ...

The equity method of accounting for a stock investment should generally be used when the investor owns 20%-50% of the investee's stock, because that level of stock ownership:
A) usually indicates a plan to acquire a controlling interest of the investee company
B) requires the investor to notify the government of any plans to acquire a controlling interest in the investee company
C) means the investor has a controlling interest in the investee company
D) gives the investor significant influence over the investee company

Textbook

Financial Accounting, Canadian Edition

Edition: 5^th

Authors: Harrison, Horngren, Thomas, Berberich, Seguin

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