Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the following accounts of an investor in Santo under the equity method of accounting?

Select one:

a.

No effect on Investment, Decrease Investment Revenue

b.

Increase Investment, Decrease Investment Revenue

c.

Decrease Investment, No effect on Investment Revenue

d.

No effect on Investment, No effect on Investment Revenue

e.

Increase Investment, Increase Investment Revenue