COMPANY A PURCHASED A 5% INTEREST IN COMPANY B. IT IS NOW THE SINGL...

6. Company A purchased a 5% interest in Company B. It is now the single largest shareholder

of Company B. It will hold a seat on the Board of Directors of Company B. Company A will

account for its investment in Company B using the:

A. equity method.

B. lower of cost or market method.

C. acquisition