Problem
On January 2, 2022 Investor Inc. purchased 30% of the common stock of Investee Inc. The other 70% of Investee Inc. common stock is held by a small group of shareholders who operate Investee Inc. without regard to the views of other investors. Investor Inc. unsuccessfully sought to obtain representation on the board of directors of Investee Inc during April 2022. In addition, Investor Inc. requested and was denied access to Investee Inc. quarterly financial statements for the first 3 quarters of fiscal 2022.
Task
Should Investor Inc. use the equity method to account for its Investment in Investee Co during 2022? Support your conclusion with citation to guidance from specific paragraphs in the codification. Two or three well-crafted sentences should be adequate.