Griffon Incorporated Holds a 30% Ownership in Duck Corporation

question 15

Multiple Choice

Griffon Incorporated holds a 30% ownership in Duck Corporation.Griffon should use the equity method under which of the following circumstances?

• A)Griffon has surrendered significant stockholder rights by agreement between Griffon and Duck.
• B)Griffon has been unable to secure a position on the Duck Corporation's Board of Directors.
• C)Griffon has inadequate or untimely information to apply the equity method.
• D)The ownership of Duck Corporation is diverse.