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The Equity Method of Accounting for an Investment in the Ordinary

Question 178

Multiple Choice

The equity method of accounting for an investment in the ordinary shares of another company should be used by the investor when the investment


A) is composed of ordinary shares and it is the investor's intent to vote the ordinary shares.
B) ensures a source of supply of raw materials for the investor.
C) enables the investor to exercise significant influence over the investee.
D) is obtained by an exchange of shares for shares.

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