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An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee company. How should

An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee company. How should cash dividends received from the investee affect the financial statements of the investor?

a. A decrease in retained earnings
b. An increase in the Equity Investment account
c. A decrease in the Equity Investment account
d. Dividend income

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