How will dividend affect each company investment account

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Question - Frank Investments holds a 15% equity investment in Titans Inc. and treats it as a passive investment. O'Hare Consulting holds 30% of Titans Inc.'s stock and has a significant influence over Titans Inc.  On August 10, 2020, Titans Inc. pays dividends to its stockholders.

How will the dividend affect each company's investment account?

Frank Investments: Decrease; O'Hare Consulting: No Effect

Frank Investments: Decrease; O'Hare Consulting: Decrease

Frank Investments: No Effect; O'Hare Consulting: No Effect

Frank Investments: No Effect; O'Hare Consulting: Decrease

Reference no: EM133077457

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