When is the equity method used to account for long-term investments in common stock?

• When the investment is between 20% and 50% of the voting stock, regardless of whether or not significant influence can be achieved
• When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved
• When the investment is between 20% and 50% of the voting stock and significant influence can be achieved
• When the investment is greater than 50% of the voting stock and significant influence can be achieved

choose the correct answer