Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the Investor sells the investment Investee declares a dividend Investee pays a dividend Earnings are reported by the investee in its financial statements Question 10 7 pts Pence Corporation, which accounts for its investments in the common stock of Walsh Company by the equity method, should ordinarily record a dividend received from Walsh as An addition to the carrying value of the investment Dividend revenue A reduction of the carrying value of the investment Revenue from affiliate Question 11 6 pts A company that has a large investment in property, plant and equipment and that fails to systematically replace those assets generally reports a decreasing return on assets over the useful life of its asset base. O True False Question 12 6 pts Expenditures on PP&E that increase future service potential should be added to the remaining unexpired cost of the asset and be charged to expense over the estimated remaining period of benefit. True False