Question
An investor uses the equity method to account for an investment in common stock.Assuming the fair value option of reporting financial assets is not elected,
An investor uses the equity method to account for an investment in common stock.Assuming the fair value option of reporting financial assets is not elected, after the date of acquisition, the investment account of the investor would
A: Not be affected by its share of the earnings or losses of the investee.
B: Not be affected by its share of the earnings of the investee, but would be decreased by its share of the losses of the investee.
C: Be increased by its share of the earnings of the investee, but would not be affected by its share of the losses of the investee.
D: Be increased by its share of the earnings of the investee, and decreased by its share of the losses of the investee.
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