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.