Leno Ltd. has invested in several domestic manufacturing corporations. Which of the following investments would most likely be accounted for under the equity method on Leno's financial statements?
A) A holding of 20,000 of the 25,000 outstanding common shares of Riser Co.
B) A holding of 3,000 of the 10,000 outstanding preferred shares of Riser Co.
C) A holding of 15,000 of the 50,000 outstanding common shares of Riser Co.
D) A holding of 5,000 of the 60,000 outstanding common shares of Riser Co.
Correct Answer:
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