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Following are the rules when a company holds less than 20% of a company's stock. Companies use the cost method Investment is recorded at cost
Following are the rules when a company holds less than 20% of a company's stock. Companies use the cost method Investment is recorded at cost and revenue is recognized only when cash dividends are received Cost includes all expenditures necessary to acquire these investments, such as the price paid plus any brokerage fees (commissions) Class, Could you briefly discuss how stock is accounted for when a company holds 20-50% of a company's stock
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