Ques Common Corp. has been acquiring shares of Fort Co. over the last three years and now owns 42% of the outstanding voting common shares. The remaining 58% of the shares are held by members of the same family. To date, the family has elected all members of the board of directors, and common has not been able to obtain a seat on the board, Common is hoping to eventually buy a block of shares from an elderly family member and thus one day own 60% of the shares. Common reports under IFRS. How should Common report the investment in Fort in its financial statements? a) Common should prepare consolidated financial statements with Fort. b) Common should use the equity method to account for the investment in Fort. Common should use the equity method or the cost method to account for the investment in Fort. Common should use the cost method or fair value method to account for the investment in Fort. Question 2 (1 point) Which of the following factors contributes to an investor having significant influence over an investee? a) Insignificant transactions occur between the investor and the investee. Ob) The investor owns more than 50% of the common shares outstanding of the investee. C There is an interchange of managerial personnel between the investor and investee. d) The investor is not represented on the board of the investee