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ABC company invests 15% interest in XYZ company at the beginning of Year 1. Equity method is used. How would the the dividends paid by XYZ in Year 1 affect ABC 's calculation of the investment income for Year 1 and the Year 1 ending balance of investment in XYZ ? The dividends from XYZ reduce both the investment income and ending investment balance. The dividends from XYZ increase the investment income but not ending investment balance. The dividends from XYZ reduce the investment income but not the ending investment balance. The dividends from XYZ reduce the ending investment balance but not investment income