Under the Equity Method

question 74

Multiple Choice

Under the equity method,

• A) the receipt of dividends from the investee results in an increase in the investment account.
• B) the receipt of dividends from the investee results in a credit to the Dividend Revenue account.
• C) the receipt of dividends from the investee results in an increase in the investment account and a credit to the Dividend Revenue account.
• D) the receipt of dividends from the investee reduces the carrying amount of the investment account.

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