Under the equity method of accounting, which of the following is a true statement for an investment purchased at book value?

The investor reports as income the amount of dividends received.

The investor reports as income the amount of dividends received less its proportionate share of the investee's net income.

The investor reports as income its proportionate share of the investee's net income.

The investor reports as income its proportionate share of the investee's net income less dividends received.