Under the Cost Method of Accounting for an Investment, the Investing

Multiple Choice

Under the cost method of accounting for an investment, the investing company increases

A) its investment account for its share of the investee's earnings and decreases its investment account for its share of the investee's dividends.
B) its investment account for its share of the investee's earnings and increases its dividend revenue account for its share of the investee's dividends.
C) its dividends revenue account for its share of the investee's dividends and increases its investment account for any gain in market value on the investment at year-end.
D) its investment account for any gain in market value on the investment at year-end and records an income statement gain for the same amount.
E) an Unrealized Gain on Market Value Adjustment for any gain in market value on the investment at year-end and increases Retained Earnings for the same amount.