Pinellas Company owns 30% of the voting common stock of Sanibel Company. Pinellas will probably use the equity method of accounting to account for this investment because: A. Pinellas will be able to appoint 30% of the directors of Sanibol Co. B. No other shareholder holds more than a 29% interest in Sanibel Co C. Pinellas receives 30% of dividends paid by Sanibel Co. D. Pinellas is assumed to be able to exercise significant influence over the affairs of Sanibet Co Palmetto Inc is currently using the equity method to account for its 30% investment in Royal Company In the acquisition last year of Royal Co common stock, Palmetto calculated $1,000,000 of goodwill. The correct accounting for this goodwill during the current year is: A. Amortization over 40 years B. Amortization over the anticipated holding period of the Royal Company stock C. Test for impairment at year-end. D. No accounting necessary