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Under the initial value method, when accounting for an investment in a subsidiary, The investment account does not change from year to year. Income reported

Under the initial value method, when accounting for an investment in a subsidiary,

The investment account does not change from year to year.

Income reported by the subsidiary increases the investment account.

The investment account is adjusted to fair value at year-end.

Dividends received are ignored.

Dividends received by the subsidiary decrease the investment account.

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