Which method of accounting will generally be used when one company purchases less than $20\%$ of the outstanding stock of another company?

Which method of accounting will generally be used when one company purchases less than $20\%$ of the outstanding stock of another company?

Either the fair value method or the equity method may be used, depending upon the relationship between the companies.

Only the acquisition method.

Only the fair value method may be used.

Only the equity method may be used.