The equity method of accounting for a stock investment should generally be used when the investor owns a level of stock ownership that:
A) is the controlling interest in the investee company.
B) gives the investor significant influence over the investee company.
C) usually indicates a plan to acquire a controlling interest in the investee company.
D) requires the investor to notify the government of any plans to acquire a controlling interest in the investee company.
Correct Answer:
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