U.S.GAAP view investments of between 20 and 50 percent of the voting stock of another company (unless evidence indicates that significant influence cannot be exercised) as

Question

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According to U.S. GAAP, investments of between 20 and 50 percent of the voting stock of another company are considered minority investments. However, if evidence indicates that significant influence can be exercised, they are considered active investments. Since the question states that there is no evidence to suggest significant influence cannot be exercised, the best choice is minority, active investments, which is option B.

USGAAP View Investments of Between 20 and 50 Percent of the Voting