Choice "D" is correct. Component units may be presented using either the discrete or blended method within the financial statements of the primary reporting entity. Discrete presentation is an acceptable method to present component units.
Choice "a" is incorrect. Component units may be presented using either the discrete or blended method within the financial statements of the primary reporting entity. Consolidation is not an acceptable method to present component units.
Choice "c" is incorrect. Component units may be presented using either the discrete or blended method within the financial statements of the primary reporting entity. The "cost method" is not an acceptable or recognized method to present component units.
Choice "b" is incorrect. Component units may be presented using either the discrete or blended method within the financial statements of the primary reporting entity. Government-wide presentation is a component of basic financial statement presentation and is not an acceptable or recognized method to present component units.