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DSI Company recently completed a deal with one of its main suppliers, Microchips Ltd., wherein it purchased 15% of Microchips' voting shares.The deal also gave DSI the right to appoint two of the members of Microchips Ltd for the six-person board of directors.Which of the following methods should DSI use to account for its investment in Microchips Ltd.?
Balance Sheet
An economic report indicating a company's possessions, financial responsibilities, and the value belonging to shareholders at a certain instance.
Income Statement
A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net profit or loss.
Accounting Equation
A basic principle of accounting that represents the relationship between an entity's assets, liabilities, and owners' equity (Assets = Liabilities + Owners' Equity).
Accounts Payable
Obligations a company owes to its suppliers or creditors for goods and services received but not yet paid for.
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