1. A company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply the equity method of accounting to his investment? 2. What indicates an investor's ability to significantly influence the decision-making process of an investee? 3. When the inventory is sold in the following year the following activity occurs to the investor: a. The investors income account is increased by the amount deferred from the prior year. b. The investors investment account is increased by the amount deferred from the prior year. c. The investors Retained Earnings account is decreased by the amount deferred in the prior year. d. The investors Equity account is increased by the amount deferred from the prior year