method are true 9) All of the following statements regarding the investment account using the equity except A) Dividends received are reported as revenue. B) The investment is recorded at cost. C) Net income of investee increases the investment account D) Dividends received reduce the investment account. E) Amortization of fair value over cost reduces the investment account. 10) Which of the following statements is true? A) Any previous business combination originally accounted for under purchase or pooling of interests accounting method will now be accounted for under the acquisition method of accounting for business combinations. B) Neither the purchase method nor the pooling of interests method is allowed for new busines combinations. C) The pooling of interests for business combinations is an alternative to the acquisition method D) Companies previously using the purchase or pooling of interests accounting method must report a change in accounting principle when consolidating those subsidiaries with new acquisition combinations. E) The purchase method for business combinations is an alternative to the acquisition method. 11 ) Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2018, Dew reported income of $250,000 and paid dividends of S80,000. There is no amortization associated with the investment. During 2018, how much income should Yaro recognize related to this investment? A) $24,000. B) $75,000. C) $99,000. D) $80,000. E) $5 1,000. 12) A statutory merger is a(n): A) Acquisition of a competitor. B) Legal proposal to acquire outstanding shares of the target's stock. C) Acquisition of a supplier or a customer. D) Business combination in which both companies continue to exist. E) Business combination in which only one of the two companies continues to exist as a legal corporation