CCES Corporation acquires a controlling interest in Schmaling, Inc. CCES may utilize three methods to internally account for this investment. Class, what are these methods? Could you discuss their advantages and disadvantages? Solution There are typically three types of accounting for investment made internally. 1) Cost or equity method: It is used when investor acquires < 20% of investee\'s voting stock (insignificant influence). 2) Equity method: Investor acquires 20% – 50% of investee\'s voting stock (significant influence). 3) Consolidation Method Investor acquires > 50% of investee\'s voting stock (legal control). .