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D Question 51 1 pts If a company acquires a 40% common stock interest in another company, o the equity method is usually applicable. e
D Question 51 1 pts If a company acquires a 40% common stock interest in another company, o the equity method is usually applicable. e all influence is classified as controlling e the cost method is usually applicable o the ability to exert significant influence over the activities of the investee does not exist. Question 52 1 pts If the cost of an available-for-sale security exceeds its fairvalue by $40,000, the entry to recognize the loss Ois not required since the share prices will ikely rebound in the long run will show a debit to an exxpense account ewillshowa credit to a contra-asset account that appears in the stockhalders equ ty section of the ba ance sheet Dwshowadebit to an unrealzed loss account that cecucte In the stockholders equity section of the lbalance shee
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