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YOU ARE AUDITING A COMPANY THAT OWNS 20% OF THE VOTING COMMON STOCK OF ANOTHER CORPORATION AND USES THE EQUITY METHOD TO ACCOUNT FOR THE

YOU ARE AUDITING A COMPANY THAT OWNS 20% OF THE VOTING COMMON STOCK OF ANOTHER CORPORATION AND USES THE EQUITY METHOD TO ACCOUNT FOR THE INVESTMENT. HOW WOULD YOU VERIFY THAT THE EQUITY METHOD IS APPROPRIATE IN THIS CASE?

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