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How should the investor account for cash dividends

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Reference no: EM132936440

Problem 1: When an investor uses the equity method to account for investments in equity securities, how should the investor account for cash dividends received from the investee be shown?

a. As a deduction from the investor's share of the investee's profits
b. As dividend income
c. As a deduction from dividends paid by the investor
d. As a deduction from the investment account.

Reference no: EM132936440

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