Which of the Following Results in a Decrease in the Equity

question 67

Multiple Choice

Which of the following results in a decrease in the Equity in Investee Income account when applying the equity method?

• A) Dividends paid by the investor.
• B) Net income of the investee.
• C) Unrealized gain on intra-entity inventory transfers for the current year.
• D) Unrealized gain on intra-entity inventory transfers for the prior year.
• E) Extraordinary gain of the investee.

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Definitions:

Interest Rate

is the cost of borrowing money or the return on investment, expressed as a percentage of the principal, over a specified period.