Which one of the following is true of the equity method?
A) The income recognized by the investor is based on the percentage of stock ownership and the amount of earnings reported by the investee.
B) Market value adjustments are made at yearend.
C) The receipt of dividends increases net income on the investor's financial statements.
D) The percent of ownership must be greater than 50% to apply this method.
Correct Answer:
Verified
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