Under the Equity Method

Multiple Choice

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 Income account.
C) the receipt of dividends from the investee results in an increase in the investment account and a credit to the Dividend Income account.
D) the receipt of dividends from the investee reduces the carrying amount of the investment account.