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Camber Corp

Question 40

Multiple Choice

Camber Corp. owns 10% of Nova Corp's outstanding voting stock. Camber should account for its long-term equity investment in Nova Corp. using the:


A) market value method if the stock is not traded on the market.
B) cost method if the stock is traded on the market.
C) cost method if the stock is not traded on the market.
D) equity method if the stock is traded on the market.

Correct Answer:

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