The Cost Method of Accounting for Long-Term Equity Investments Is

question 99

Multiple Choice

The cost method of accounting for long-term equity investments is typically used when:

• A) between 20% and 50% of the investee company is owned.
• B) over 50% of the investee company is owned.
• C) at least 20% of the investee company is owned.
• D) None of the above is a consideration in choosing the cost method.

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