If a company acquires a 40% interest in another company

A) the equity method is usually applicable.
B) it would always have a controlling interest.
C) one of the fair value models is usually applicable.
D) the investor does not have the ability to exert significant influence over the investee.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profit or loss.

Controlling Interest

Ownership of a sufficient portion of a company's stock to influence or control its management and operations.