A Company owns $15\%$ of the outstanding common shares of B Company.

The remaining outstanding shares are widely held; no other individual

investor holds more than $1\%$ of the outstanding common shares of B

Company. None of the other investors have formed a voting block $($i$.$e$.,$ they

do not have an agreement to vote their shares together$).$ Except for A

Company, all the shareholders display indifference as to the make$-$up of the

board of directors.

How should the investment in B Company be reported in the financial

statements of A Company?

Equity method.

Consolidation.

Fair value method.

Cost method.