2. Under the equity method of accounting for the operating results of a subsidiary, dividends declared by
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2. Under the equity method of accounting for the operating results of a subsidiary, dividends declared by the subsidiary to the parent company are accounted for by the parent company as:
a. Dividend revenue on the declaration date.
b. A reduction of the investment in subsidiary on the payment date.
c. Dividend revenue on the payment date.
d. A reduction of the investment in subsidiary on the declaration date.
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