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ng purposes, the method used to account for investments in common stock is determined by or accounti Da. whether the acquisition of the stock by the investor was friendly or hostile Ob. the amount paid for the stock by the investor Oc. whether the tock has pa d dividends in past years ○d. the extent of an invest-s influence over the operating and financial affairs of the investee
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D.The extent of an investor's influence over the operating and financial affairs of the investee.

the method used to account for investments in common stock is determined by an investor's influence over the operating and financial affairs of the investee.

If investment does not have significant influence - cost method is used.

Equity method is used if investment is between 20% - 50%.

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