When an Investor Uses the Cost Method to Account for Investments

question 20

Multiple Choice

When an investor uses the cost method to account for investments in common stock,cash dividends received by the investor from the investee should normally be recorded as

• A) a deduction from the investment account.
• B) dividend revenue.
• C) an addition to the investor's share of the investee's profit.
• D) a deduction from the investor's share of the investee's profit.