A parent company received dividends in excess of the parent companys share of the subsidiarys earnings subsequent to the date of the investment. How will the parent companys investment account be affected by those dividends under each of the following accounting methods?

Select one:

a. Cost Method: No effect Partial Equity Method: No effect

b. Cost Method: No effect Partial Equity Method: Decrease

c. Cost Method: Decrease Partial Equity Method: No effect

d. Cost Method: Decrease Partial Equity Method: Decrease