ABC Company purchased some equipment that will last 5 years. If ABC chooses to use an accelerated depreciation method, the total amount of depreciation expense charged over the 5 year life of the equipment will be higher than it would have been if ABC used the straight line method.

TRUE OR FALSE

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When an investor company uses the equity method to account for its investment in the common stock of an investee, then the cash dividends received by the investor company from the investee should be recorded as

Question 48 options:

	an increase in the investor's investment account balance.
	a reduction of the investor's investment account balance.
	dividend revenue on the investor's books.
	a reduction on the investor's share of the investee's profits.