A corporation acquires a 30% voting interest in another corporation. In this situation, the
long-term investment is generally accounted for on the investor corporation’s books using
which of the following reporting methods?

Answer (D) is correct.
If an investor can exercise significant influence over an investee, the
investment should be accounted for by the equity method. When a
corporation owns 20% or more of the voting power of the investee, the
ability to exercise significant influence is presumed.