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Goll Co. has a 25% interest in the common stock of Rose Co. and an 18% interest in the common stock of Jave Co. Neither investment gives Goll the ability to exercise significant influence over either company’s operating and financial policies. Which of the two investments should Goll account for
using the equity method?
A. Both Rose and Jave.
B. Rose only.
C. Jave only.
D. Neither Rose nor Jave.
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