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Find koehn corporation ordinarily record a cash dividend

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Problem 1: Koehn Corporation accounts for its investment in the common stock of Sells Company under the equity method. Koehn Corporation should ordinarily record a cash dividend received from Sells as

Option 1: an addition to the carrying value of the investment.

Option 2: dividend income.

Option 3: a reduction of the carrying value of the investment.

Option 4: additional paid-in capital.

Reference no: EM132724648

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