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How will these dividends effect the investment account

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Question - Sheehan & Co. purchased 19% of the outstanding shares of Jules & Associates. Jules then declared dividends at year end. How will these dividends effect the investment account for Sheehan?

1. Dividends received will increase the investment account.

2. Dividends received will reduce the investment account.

3. Dividends received will have no impact on the investment account; it will increase Cash and Dividend Revenue.

4. Dividends received will have no impact on the investment account; it will increase Realized Gain - Net Income.

Reference no: EM132603602

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