"The equity method is usually used for long-term investments." Do you think this is appropriate? Explain.

(A) The equity method is usually appropriate for long-term investments where the investor has an ownership interest of 20% to 50%, because the owner typically has the ability to exert significant influence over the investee. This method is used to account for wholly-owned subsidiaries on the parent company's financial statements.

(B) The equity method is usually appropriate for long-term investments where the investor has an ownership interest of 20% to 50%, because the owner typically has the ability to exert significant influence over the investee. This method is also used to account for majority-owned subsidiaries on the parent company's "parent-only" financial statements.

(C) The equity method is sometimes appropriate for long-term investments, depending on the type of company that is being accounted for. Reporting methods vary based on the industry to which the company belongs.

(D) The equity method is never appropriate for long-term investments because the owner has no influence over the investee. The market method is more appropriate for long-term investments because the investor can analyze the historical data and determine if the investment is profitable.