A necessary condition to use the equity method of reporting for an equity investment is that the investor company must
a. have the ability to exercise significant influence over the operating and financial policies of the investee.
b. own at least 30% of the investee's voting stock.
c. possess a controlling interest in the investee's voting stock.
d. not have the ability to exercise significant influence over the operating and financial policies of the investee.
Answers
Answer 1
The answer would be a. Have the ability to exercise significant influence over the operating and financial policies of the investee
Related Questions
At an output level of 50 units per day a firm has average total costs of $60 and average variable costs of $35.
Its total fixed costs are:_______.
A. $925.
B. $1,250.
C. $1,750.
D. $3,000.
