An Investor Company with a 40% Interest in an Investee

Multiple Choice

An investor company with a 40% interest in an investee properly used the equity method to account for the investment. If the entries to the Investment account for the current year showed a debit of $45,000 and a credit of $22,000, the investee must have paid total dividends of:

A) $45,000
B) $55,000
C) $22,000
D) $100,000