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Under the Equity Method of Accounting for Long-Term Investments in Common

Question 120

Multiple Choice

Under the equity method of accounting for long-term investments in common stock,when a cash dividend is received from the investee company:


A) the investor's Equity-Method Investment account is increased.
B) the Dividend Revenue account is increased.
C) the investor's Equity-Method Investment account is decreased.
D) no entry is necessary.

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