Company A owns 40 percent of Company B and exercises significant influence over the management of Company

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Company A owns 40 percent of Company B and exercises significant influence over the management of Company B. Therefore. Company A uses what method of accounting for reporting its ownership of stock in Company B?

a. the amortized cost method

b. the market-value method

c. the equity method

d. consolidation of the financial statements of companies A and B

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Financial Accounting

ISBN: 9780073208145

5th Edition

Authors: Robert Libby, Patricia Libby, Daniel Short

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Question Posted: Jun 24, 2024 02:01 AM

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Company A owns 40 percent of Company B and exercises significant influence over the management of Company

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Financial Accounting

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