When a company holds between 20% and 50% of the outstanding stock of an investee, which ofthe following statements applies?
a. The investor should always use the equity method to account for its investment.
b. The investor should use the equity method to account for its investment unless circumstancesindicate that it is unable to exercise "significant influence" over the investee.
c. The investor must use the fair value method unless it can clearly demonstrate the ability toexercise "significant influence" over the investee. d. The investor should always use the fair value method to account for its investment
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When a company holds between 20% and 50% of the outstanding stock of an investee, which ofthe following statements applies? a. The investor ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
While you are critiquing a recent presentation the intern has prepared, you notice that she looks at the ground more often than she looks at you and constantly shifts her weight from foot to foot.
Answers (2)
M has four liens, which were recorded in the following order: $150,000 on the mortgage, $2,000 to a general contractor for a new roof; $3,000 for unpaid county property taxes; and a $12,000 judgment for credit card debt.
Answers (1)
Total Assets for a company are $700,000; Accounts Payable is $75,000; Bonds Payable is $225,000; Common Stock is $300,000 and Retained Earnings is $100,000. The common-size percent for Accounts Payable is:
Answers (1)
Why is the feedback loop important? Multiple Choice It looks at what is working and what could be different to maximize efficiency. It describe how the company contributes to the world. It monitors progress so that corrective action can take place.
Answers (1)
A leftward shift of the supply curve for oil in the united states is most likely to result from:
Answers (1)
New Questions in Business
Which of the following is true about the self-employed health insurance deduction? a. Medical insurance is allowed as a deduction, subject to a dollar limitation. b. Long-term care insurance is allowed as a deduction, subject to a dollar limitation.
Answers (1)
Desires to maintain a capital structure of 80% equity and 20% debt. They currently have an effective tax rate of 30%. The company's cost of equity capital is 12%. To obtain their debt financing, they issue bonds with an interest rate of 10%.
Answers (2)
During 2017, Blossom Company disposed of Pine Division, a major component of its business. Blossom realized a gain of $2920000, net of taxes, on the sale of Pine's assets. Pine's operating losses, net of taxes, were $3580000 in 2017.
Answers (1)
On March 1, 2017, Carla Vista Co. acquired real estate, on which it planned to construct a small office building, by paying $84,500 in cash.
Answers (1)
Tools can be used safely for jobs that they were not designed to do. True or False
Answers (2)