When Is the Equity Method Used to Account for Long-Term

question 56

Multiple Choice

When is the equity method used to account for long-term investments in stocks?

• A)When the investment is between 20 - 50% of the voting stock, regardless of whether or not significant influence can be achieved.
• B)When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved.
• C)When the investment is greater than 50% of the voting stock and significant influence can be achieved.
• D)When the investment is between 20 - 50% of the voting stock and significant influence can be achieved.