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An investor company owns 30% of the stock in an investee. If this investment is being accounted for using the equity method of accounting, and
An investor company owns 30% of the stock in an investee. If this investment is being accounted for using the equity method of accounting, and the investee reports a net income of $100,000 for the year, the following will result: _______.
the long-term equity-method investment account will be decreased by $30,000 | ||
no entry will be made until the income is distributed in the form of a dividend | ||
the long-term equity-method investment account will be increased by $30,000 | ||
dividend income of $30,000 will be recorded |
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