1. Under the equity method, the investor recognizes as revenue (expense) each period _____. The investor recognizes dividends received from the investee as a(n) _____.

a.	when it receives dividends; a return (reduction) of investment
b.	when it receives dividends; income
c.	its share of the net income/(loss) of the investee; a return (reduction) of investment
d.	Its share of the net income/(loss) of the investee; income