The equity method is used to account for stock investments in which the investor company owns between 20% and 50% of another company's stock.

Name: The equity method is used to account for stock investments in which the investor company owns between 20% and 50% of another company's stock.
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The equity method is typically used when an investor has significant influence over the investee, which is generally presumed when owning 20% to 50% of the voting stock.

The Equity Method Is Used to Account for Stock Investments