GAAP regarding accounting for unrealized gains and losses on investments in equity securities will apply to an investment when the percentage of ownership of another company is:

Question

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Under GAAP, accounting for unrealized gains and losses on investments in equity securities should be applied only to investments where the percentage of ownership is less than 20%. For investments where the percentage of ownership is 20% or more, the equity method of accounting should be applied, which involves recognizing the investor's proportionate share of the investee's net income or losses.

GAAP Regarding Accounting for Unrealized Gains and Losses on Investments