Which one of the following items below would not affect the investor's income for the period?
A) interest received on a temporary investment in bonds
B) dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock
C) dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock
D) interest received on a long-term investment in bonds

Question

Quizplus · Accepted Answer

When an investor owns 20% or more of the investee's stock, the equity method is typically used, and dividends received are not considered income but a return of investment, thus not affecting the investor's income for the period.

Which One of the Following Items Below Would Not Affect