Becker says 0-19% , use cost method (unless problems states significant influence exists-in which case equity method will be used)
20-50% Equity method is used . It is presumed to be able to exercise significant influence within this range.
Anyway, as pointed out earlier in this discussion, margins are not usually tested.
Wish u good luck!
correct.... i am referring Becker 2008 edition and I wasn't confused initially :( Then, I saw their update as follows:-
http://www.beckercpa.com/students/2008_Financial_3_Update.pd f
which mentions that cost to be 0%-20%.
Anyway, Thanks Sanjana :)
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Topic: cost vs equity method
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