The method used to account for investments in which the investor has 20-50% of the investee's voting stock and can significantly influence the decisions of the investee is the:

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The equity method is used to account for investments in which the investor holds 20-50% of the voting stock of the investee and can significantly influence the investee's decisions. Under the equity method, the investor records its share of the investee's net income or loss on its income statement and reflects its share of the investee's assets and liabilities on its balance sheet. It is also important to note that the equity method is not used when the investor has control over the investee, in which case the consolidated method would be used.

The Method Used to Account for Investments in Which the Investor