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The equity method of accounting for an investment in the common stock of another company should be used by the investor when the investment enables

The equity method of accounting for an investment in the common stock of another company should be used by the investor when the investment
enables the investor to exercise significant influence over the investee.
is composed of common stock and it is the investor's intent to vote the common stock.
is obtained by an exchange of stock for stock.
ensures a source of supply of raw materials for the investor.
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