2. Zero Company purchases 35% of the stock of Plus Company. The chief accountant advises you that this stock investment must be accounted for under the equity method. Accordingly, which of the following is incorrect

a. The stock must be restated at its fair value on the balance sheet

b. Income is recognized when Plus Company reports its earnings instead of when a dividend is received

c. Zero exercises some control over Plus

d. The equity method is not appropriate if Zero instead acquired 100% of the Plus Company stock.