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The equity method of accounting for long-term investments

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Reference no: EM13573342

The equity method of accounting for long-term investments in stock should be used when the investor has significant influence over an investee and owns:

(a) between 20% and 50% of the investee's common stock.

(b) 20% or more of the investee's bonds.

(c) more than 50% of the investee's common stock.

(d) less than 20% of the investee's common stock.

Reference no: EM13573342

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