d Consolidation would not pr 2. An 80 percent-owned subsidiary that cannot be consolidated must be accounted for: a Under the equity method b Under the cost method c Under the equity method if the parent exercises significant influence d At market value if the subsidiary is in bankruptcy 3. Consolidated statements for Pop Corporation and its 60 percent-owned investee, Son Company, will not be prepared under current GAAP if: a The fiscal periods of Pop and Son are more than three months apart b Pop is a major manufacturing company and Son is an insurance company c Son is a foreign company d Pop Corporation and Son Company form a joint venture 4. Pop Industries owns 7,000 shares of Son Corporation's outstanding common stock (a 70 percent interest). The remaining 3,000 outstanding common shares of Son are held by Ott Insurance Company. On Pop Industries' con- solidated financial statements, Ott Insurance Company is considered: a An investee b An associated company C An affiliated company d A noncontrolling interest