Band Co$.$ uses the equity method to account for its investment in Guard, Inc. common stock. How should Band record a $2\%$ stock

dividend received from Guard?

A$.$ As dividend revenue at Guard's carrying value of the stock.

B$.$ As dividend revenue at the market value of the stock.

C$.$ As a reduction in the total cost of Guard stock owned.

D$.$ As a memorandum entry reducing the unit cost of all Guard stock owned.