When the Equity Method of Accounting for Investments Is Used

question 13

Multiple Choice

When the equity method of accounting for investments is used by the investor,the Investments account increases when:

• A)A cash dividend is received from the investee.
• B)The investee reports a net income for the year.
• C)The investor records additional depreciation related to the investment.
• D)The investee reports a net loss for the year.

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