When an Investor Owns Between 20% and 50% of the Outstanding

question 18

Multiple Choice

When an investor owns between 20% and 50% of the outstanding stock of another company,the ________ method is used to account for the stock investment.

• A)fair value
• B)equity
• C)consolidated
• D)available-for-sale

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Definitions:

Merit Rating

A system used to evaluate the performance of employees by systematically rating them on their abilities and achievements within the organization.

State Unemployment Taxes

Taxes paid by employers to fund the state unemployment compensation programs for laid-off workers.

Merit Rating

A system used to evaluate and grade an employee’s performance, often influencing salary increments and promotions.

Unemployment Tax Rates

Rates set by governments to fund unemployment insurance programs, calculated as a percentage of employer payroll expenses.