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The investors accounting procedure under the equity method is to debit the investment account to record its share of investee income and to credit the
The investors accounting procedure under the equity method is to debit the investment account to record its share of investee income and to credit the investment account to record its share of investee dividends. In substance, the net effect is to
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Recognize only distributed income of the investee.
Not consider distributed income of the investee as income.
Recognize both distributed and undistributed income of the investee.
Increase the investment account for investee distributed income.
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