The following scenarios represent ownership percentages and degree of influence: Ownership Influence I. 10% No significant influence II. 25% No significant influence III. 40% Significant influence IV. 55% Control Which of the following statements is correct regarding external financial reporting in the above scenarios?

Use the fair value method under scenarios I and II

Use the equity method only in scenario I

Use the equity method under scenarios I, II, and III.

Use the acquisition method under scenarios III and IV.