Which of the Following Results in a Decrease in the Investment

question 63

Multiple Choice

Which of the following results in a decrease in the investment account when applying the equity method?

• A) Dividends paid by the investor.
• B) Net income of the investee.
• C) Net income of the investor.
• D) Share of gross profit on intra-entity inventory sales for the current year.
• E) Purchase of additional common stock by the investor during the current year.