Which of the Following Results in an Increase in the Investment

question 108

Multiple Choice

Which of the following results in an increase in the investment account when applying the equity method?

• A) Unrealized gain on intra-entity inventory transfers for the prior year.
• B) Unrealized gain on intra-entity inventory transfers for the current year.
• C) Dividends paid by the investor.
• D) Dividends paid by the investee.
• E) Sale of a portion of the investment during the current year.

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