Under the equity method,
A) the receipt of dividends from the investee results in an increase in the investment account.
B) the receipt of dividends from the investee results in a credit to the Dividend Revenue account.
C) the receipt of dividends from the investee results in an increase in the investment account and a credit to the Dividend Revenue account.
D) the receipt of dividends from the investee reduces the carrying amount of the investment account.

Question

Quizplus · Accepted Answer

Under the equity method, dividends received from the investee are considered a return on investment, thus reducing the carrying amount of the investment account.

Under the Equity Method