Question
What is the equity method? A. The equity method is very similar to the market method. Both are used to account for investments of 30%
What is the equity method?
A. The equity method is very similar to the market method. Both are used to account for investments of 30% of the share of unconsolidated subsidiaries. This assumes that an investor has minimal influence over the subsidiary.
B. The equity method is used to account for investments of 20% to 50% of the shares of unconsolidated subsidiaries. This assumes that an investor has significant influence over, but does not control, the unconsolidated subsidiary.
C. The equity method is used to account for investments of over 60% of the shares of unconsolidated subsidiaries. This assumes that an investor has significant influence over, but does not control, the unconsolidated subsidiary.
D. None of the above.
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