In reviewing the Becker materials, the lecture, and your eBook reading for this week, it is plain to see that the accounting for investment securities by the extent of significant influence exercised by the investor company over the investee company.

1)How do you determine the extent of significant influence of investor company over the investee company?

2)When do you use the equity method and how the investments are accounted for under the equity method?

3)Discuss with suitable examples.