45.The MP3 Company owns 30% of the shares of the ZUNE company. MP3 does not use the equity method to account for this investment. The most likely reason for this is: Select one: a MP3 has no significant influence on Zune. b. The minimum percentage required to use the economic method is 40% c. The economic method is optional. d. The economic method is used when you own more than 50% of the common shares.
45.The MP3 Company owns 30% of the shares of the ZUNE company. MP3 does not use the equity method to account for this investment. The most likely reason for this is: Select one: a MP3 has no significant influence on Zune. b. The minimum percentage required to use the economic method is 40% c. The economic method is optional. d. The economic method is used when you own more than 50% of the common shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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45.The MP3 Company owns 30% of the shares of the ZUNE company. MP3 does not use the equity method to account for this investment. The most likely reason for this is:
Select one:
a MP3 has no significant influence on Zune.
b. The minimum percentage required to use the economic method is 40%
c. The economic method is optional.
d. The economic method is used when you own more than 50% of the common shares.
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