If an investor owns less than 20% of the common stock of another corporation as a long-term investment, Question 6 options: it is presumed that the investor has relatively little influence on the investee. it is presumed that the investor has significant influence on the investee. the equity method of accounting for the investment should be employed. no dividends can be expected. When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor Question 7 options: has insignificant influence on the investee and that the cost method should be used to account for the investment. should apply the cost method in accounting for the investment. will prepare consolidated financial statements. has significant influence on the investee and that the equity method should be used to account for the investment. Revenue is recognized when cash dividends are received under Question 8 options: the controlling interest method. the equity method. the cost method. both the cost and equity methods.