Question: Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it When

Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it

When a company buys the stock of another company, the accounting treatment depends on the number of outstanding shares acquired. If a company acquires 35% of the shares (as a percentage of the outstanding shares) of another company, the accounting method the acquirer uses is:

- consolidation method

- fair value method

- equity method

- Any of the above. The materiality principle allows the company to choose the method.

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