Piano Company owns 55% of the voting common stock shares of Keys Corporation.Which of the following is true?

A) The investment would be accounted for using the equity method.
B) The investment would be accounted for by consolidation.
C) The investment would be accounted for under the fair value method.
D) The investment would be accounted for under the amortized cost method.

Voting Common Stock

Shares of a company that grant the shareholder voting rights in corporate decisions, typically related to the election of the board of directors.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at cost and adjusted for dividends received and the investor's share of the investee's profit or loss.

Consolidation

The process of combining the financial statements of separate subsidiary entities into one comprehensive financial statement of the parent company.