Company A owns 40 percent of Company B and exercises significant influence over the management of Company

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Company A owns 40 percent of Company B and exercises significant influence over the management of Company B. Therefore, Company A uses what accounting method for reporting its ownership of stock in Company B?

a. The consolidation method.
b. The fair value method.
c. The equity method.
d. The cost method.

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Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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Question Posted: Nov 04, 2021 04:19 AM

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Company A owns 40 percent of Company B and exercises significant influence over the management of Company

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Answers C The equity method Explanations The equity method is used when ...View the full answer

Fundamentals Of Financial Accounting

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