If the Equity Method Is Used to Account for an Investment

Multiple Choice

If the equity method is used to account for an investment in common shares

A) it is presumed that the investor has no significant influence on the investee.
B) net income of the investee are ignored by the investor.
C) net income of the investee are recorded as realized gains, but dividends received are credited to the investment account.
D) the investment account may be at times greater than the acquisition cost.