When a company holds between $\backslash (20\backslash \%\backslash )$ and $\backslash (50\backslash \%\backslash )$ of the outstanding stock of an investee, which of the following statements applies?

Select one:A$.$ The investor must use the fair value method unless it can clearly demonstrate the ability to exercise "significant influence" over the investee.B$.$ The investor should always use the equity method to account for its investment.C$.$ The investor should use the equity method to account for its investment unless circumstances indicate that it is unable to exercise "significant influence" over the$-$investee.D$.$ The investor should always use the fair value method to account for its investment.

Exam $3-$ Final Exam Navigation

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