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3. When a public company holds between 20% and 50% of the outstanding common shares of an investee, which of the following statements applies? (2)
3. When a public company holds between 20% and 50% of the outstanding common shares of an investee, which of the following statements applies? (2) a) The investor should always use the equity method to account for its investment b) 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 cost method unless it can clearly demonstrate the ability to exercise significant influence over the investee d) The investor should always use the cost method to account for its investment For the toolbar, press ALT+F10 (PC) or ALT FN F10 (Mac), B TV5 Paragraph Arial 14p 2 I. Oda 6 XX B
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