When an Investor Uses the Equity Method to Account for Investments

question 30

Multiple Choice

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

• A) an increase in the investment account.
• B) a deduction from the investment account.
• C) dividend revenue.
• D) a deduction from the investor's share of the investee's profits.