For each of the following numbered situations below, select the best letter answer concerning accounting for investments:

(A) Increase the investment account.

(B) Decrease the investment account.

(C) Increase dividend revenue.

(D) No adjustment necessary.

(1.) Income reported by 40% owned investee.

(2.) Income reported by 10% owned investee.

(3.) Loss reported by 40% owned investee.

(4.) Loss reported by 10% investee.

(5.) Change from fair-value method to equity method. Prior income exceeded dividends.

(6.) Change from fair-value method to equity method. Prior income was less than dividends.

(7.) Change from equity method to fair-value method. Prior income exceeded dividends.

(8.) Change from equity method to fair-value method. Prior income was less than dividends.

(9.) Dividends received from 40% investee.

(10.) Dividends received from 10% investee.

(11.) Purchase of additional shares of investee.

(12.) Investor's share of gross profit from intra-entity inventory sales when using the equity method.