When the equity method is used to account for an investment in stock,dividends received by the investor are credited to the Dividend Income account.

Name: When the equity method is used to account for an investment in stock,dividends received by the investor are credited to the Dividend Income account.
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Under the equity method, dividends received are not recorded as dividend income but instead reduce the carrying amount of the investment.

When the Equity Method Is Used to Account for an Investment