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    Financial and Managerial Accounting Study Set 2
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    Exam 12: Investments
  5. Question
    When the Equity Method Is Used to Account for an Investment
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When the Equity Method Is Used to Account for an Investment

Question 59

Question 59

True/False

When the equity method is used to account for an investment in stock,the investor will report its share of the investee's annual earnings as income regardless of how much the investee distributes in the form of dividends.

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