Pearly White Corporation owns 70% of Shiny Smile Corporation's outstanding common stock. Pearly White should account for this investment
A) by recognizing a gain or loss on the shares in current period income at year-end.
B) using the cost method.
C) as an increase to Stockholders' Equity
D) using consolidation at year-end.
E) both a and d.
Correct Answer:
Verified
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