a. A deduction from the investor's share of the investee's profits.
b. Dividend income.
c. A deduction from the stockholders' equity account, dividends to stockholders.
d. A deduction from the investment account. (AICPA adapted)
Answer to your posting ;
When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as (d) i.e. A deduction from the investment account.
The accounting entry for cash ...
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