When the Investor's Level of Influence Changes, It May Be

question 86

Multiple Choice

When the investor's level of influence changes, it may be necessary to change from the equity method to another method. When the level of ownership falls from a range of 20% to 50% to less than 20%, the equity method typically would be discontinued and the investment account balance would be carried over at:

• A)Amortized cost on the date of ownership change.
• B)Fair market value on the date of ownership change.
• C)Discounted present value on the date of ownership change.
• D)The current balance, and this balance would serve as the new "cost".

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Motor Coordination

The harmonious function of body parts (such as muscles and limbs) enabling smooth and efficient movements.

THC

Tetrahydrocannabinol, the main psychoactive compound in cannabis that produces the "high" sensation.

Hallucinogen

A substance that induces alterations in perception, thinking, and feeling, creating hallucinations.