When a company holds between 20% and 50% of the outstanding stock of an investee, which ofthe following statements applies?
a. The investor should always use the equity method to account for its investment.
b. The investor should use the equity method to account for its investment unless circumstancesindicate that it is unable to exercise "significant influence" over the investee.
c. The investor must use the fair value method unless it can clearly demonstrate the ability toexercise "significant influence" over the investee. d. The investor should always use the fair value method to account for its investment
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