If a company owns between 20% and 50% of the stock of another company and the stock is being held as a long-term investment, which method would the investor normally use to account for this investment

Respuesta :

When a company owns between 20% and 50% of stock in another company as a long term investment, they would use the Equity method.

What is the equity method?

This is a method of recording the affairs of a company by the another company when that company owns between 20% and 50% of the subsidiary.

This method assumes that the company that owns between 20% and 50%, is very influential and so should record the shares they own to reflect that influence.

Find out more on the equity method at https://brainly.com/question/26341069.