The equity method is used when an investor can't control, but can exercise significant influence over the operating and financial policies of the investee. We presume, in the absence of evidence to the contrary, that this is so if:

A. The investor classifies the investment as available-for-sale or held-to-maturity.
B. The investor owns between 51% or more of the investee's voting shares.
C. The investor owns between 20% and 50% of the investee's voting shares.

Correct Answer: C