When an investor owns between 20% and 50% of the common stock of a corporation, it is
Fantastic news! We've Found the answer you've been seeking!
Question:
When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor has an insignificant influence on the investee and that the cost method should be used to account for the investment.should apply the cost method in accounting for the investment. will prepare consolidated financial statements.has a significant influence on the investee and the equity method should be used to account for the investment.
Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date: