The method used to account for investments in which the investor has 35% of the investee's voting stock and can significantly influence the decisions of the investee is the:

Question

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The equity method is used when an investor has significant influence over the investee, typically defined as owning between 20% and 50% of the voting stock. Under this method, the investor records their share of the investee's profits and losses on their own financial statements, rather than consolidating them with the investee's financial statements as in the consolidated method. This method is appropriate when the investor has the ability to affect the investee's operating and financial policies, but not to control them.

The Method Used to Account for Investments in Which the Investor