Question

GAAP identifies several levels of influence/control. If Company One owns 10% of the outstanding voting stock of Company Two, which level of influence/control is in evidence?

A. Fair-value method
B. Significant Influence
C. Control
D. Passive
E. None of the above

Answer 1

D which is passive

Step-by-step explanation:

An investment would be deemed passive if Company One owns 0% to 20% of the investment company.