3. When a company holds between 20% and 50% of the outstanding stock of an investee, which of the following statements applies? A) The investor should use the equity method to account for its investment unless circumstances indicate that it is unable to exercise "significant influence" over the investee. The investor must use the fair value method unless it can clearly demonstrate the ability to exercise "significant influence" over the investee. B) C) The investor should always use the fair value method to account for its investment. D) The investor should always use the equity method to account for its investment. 4. Revenue from a contract with a customer is recognized even if the contract is still wholly unperformed. cannot be recognized until a contract exists. is recognized when the customer receives the rights to receive consideration. can be recognized even when a contract is still pending. A) B) C) D) 5. A performance obligation exists when a company provides a distinct product or service. a company provides interdependent product or service. a contract is approved and signed. a company receives the right to receive consideration. A) B) C) D)