Assume the fair value option is not elected for reporting financial assets. When an investor uses the equity method to account for investments in common stock, the investment account will be increased when the investor recognizes Question 12 options: 1) A proportionate interest in the net income of the investee. 2) A cash dividend received from the investee. 3) Periodic amortization of intangibles with definite lives related to the purchase. 4) Depreciation related to the excess of market value over book value of the investees depreciable assets at the date of purchase by the investor.