Minority active equity investments are accounted for by the

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Quizplus · Accepted Answer

Minority active equity investments are accounted for by the equity method, which requires the investor to recognize its share of the investee's net income as a single line item on its income statement. The equity method is used when the investor has significant influence over the investee but does not have control. It is appropriate for investments ranging from 20% up to 50% ownership.

Minority Active Equity Investments Are Accounted for by the