Question
Omar Company reports its income from its investment in Blue Diamont Company under the equity method. Omar recognized income of $150,000 from its investment in
Omar Company reports its income from its investment in Blue Diamont Company under the equity method. Omar recognized income of $150,000 from its investment in Blue Diamond during the current year. No dividends were declared or paid by Blue Diamond during the year. Omar would should the $150,000 in its statement of cash flows for the current year prepared under the indirect method as:
Cash from investing activities.
A reduction of the investment account.
A deduction from net income in the Operating Activities section.
An adjustment in the Investing Activities section.
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