The three methods of accounting for stock investments are the market value method, the consolidation method and the equity method. The appropriate method to use depends on the percentage of ownership. Which of the following statements is true?
A) When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the consolidation method, equity method, and market value method should be used, respectively.
B) When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the market value method, consolidation method, and equity method should be used, respectively.
C) When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the equity method, market value method, and consolidation method should be used, respectively.
D) When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the market value method, equity method, and consolidation method should be used, respectively.
Correct Answer:
Verified
Q91: Parent Company has a $50,000 note receivable
Q92: Subsidiary Company borrowed $75,000 from Parent Company
Q93: If a parent company and its subsidiary
Q94: Consolidated net income for a parent and
Q95: Which of the following would NOT be
Q97: Bonds and notes that an investor intends
Q98: A consolidated balance sheet shows:
A)combined assets and
Q99: On a worksheet for a consolidated entity
Q100: The amortized cost of a held-to-maturity investment
Q101: On the financial statements, the foreign-currency gains
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents