If 10% of the ordinary shares of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is

Name: If 10% of the ordinary shares of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is
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Question

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When an investor holds less than 20% of the voting stock of an investee, the cost method is typically used, as the investor does not have significant influence over the investee.

If 10% of the Ordinary Shares of an Investee Company