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    equity method

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    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:

    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)

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    https://brainmass.com/business/accounting/business-accounting-equity-method-81062

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    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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