When the cost method is used to account for an equity investment, the carrying amount of the investment is affected by
A) the net income of the investee.
B) dividend distributions of the investee.
C) both the net income and the dividend distributions of the investee.
D) neither the net income nor the dividend distributions of the investee.

Question

Quizplus · Accepted Answer

The Answer of When the cost method is used to account for an equity investment, the carrying amount of the investment is affected by
A) the net income of the investee.
B) dividend distributions of the investee.
C) both the net income and the dividend distributions of the investee.
D) neither the net income nor the dividend distributions of the investee.

When the Cost Method Is Used to Account for an Equity