Ordinarily, a corporation owning more than 20% and less than 50% of voting stock of another corporation accounts for the investment using the equity method.

Question

Quizplus · Accepted Answer

This statement is true. The equity method is used by a corporation that owns between 20% and 50% of the voting stock of another corporation. This method takes into account the investor's share of the investee's profits and losses and records them on the investor's balance sheet.

Ordinarily, a Corporation Owning More Than 20% and Less Than