alexedwards307
14.04.2020 •
Business
An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee company. How should cash dividends received from the investee affect the financial statements of the investor
Select one:
a. A decrease in the Equity Investment account
b. A decrease in retained earnings
c. An increase in the Equity Investment account
d. Dividend income
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Ответ:
Option A is correct.
A decrease in the Equity Investment account
Explanation:
Dividend received amount decreases the investment account. Net income interest in investee account is added to the investment account.
Ответ: