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An equity method investment has a beginning balance of $250,000. This investment balance represents 40% of the equity of the investee. If the investee earns
An "equity method" investment has a beginning balance of $250,000. This investment balance represents 40% of the equity of the investee. If the investee earns $25,000 and pays dividends of $10,000 during the period, then:
A. The ending investment balance is $246,000. B. The ending investment balance is $250,000. C. The ending investment balance is $260,000. D. The ending investment balance is $265,000. E. None of these.
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