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A company should use the equity method to account for an investment if it has the ability to exercise significant influence over the operating policies

image text in transcribed A company should use the equity method to account for an investment if it has the ability to exercise significant influence over the operating policies of the investee. it owns 30% of another company's stock. it has a controlling interest (more than 50\%) of another company's stock. the investment was made primarily to earn a return on excess cash

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