The investor should generally use the equity method of accounting for the investee if the investor owns what percentage of the outstanding stock of the investee?

Name: The investor should generally use the equity method of accounting for the investee if the investor owns what percentage of the outstanding stock of the investee?
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Question

Quizplus · Accepted Answer

The equity method is typically used when an investor has significant influence over the investee, which is generally presumed when owning 20% to 50% of the outstanding stock.

The Investor Should Generally Use the Equity Method of Accounting