Alley, Inc. owns 99% of the voting shares of Babba. Babba is not a variable interest entity and Alley controls Babba. At year end, the fair value of the Babba shares is readily determinable. Alley will report its investment in Babba:

Group of answer choices

Under the equity method.

As a Trading security

As a consolidation.

Any of the above are permitted at the discretion of management.