Assuming that A acquired a controlling interest in B through numerous small acquisitions, what would be appropriate accounting with respect to these acquisitions?

A) An acquisition differential must be computed following each purchase.
B) The equity method must be adopted retroactively once 20% ownership is obtained.
C) The purchases should all be grouped together and treated as a single block purchase.
D) The cost method should be used until a controlling interest is acquired.

Controlling Interest

Ownership interest in a business entity through holding more than 50% of its voting shares, granting the ability to control decisions and policies.

Equity Method

Accounting for investments with significant influence, where the investment's carrying amount is adjusted for the investor's share of the investee's profits or losses.

Small Acquisitions

Refers to the purchase of smaller companies, typically involving less financial risk and a simpler integration process compared to larger mergers and acquisitions.