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When an investor uses the equity method to account for investments in common stock, the investors share of cash dividends from the investee should be

When an investor uses the equity method to account for investments in common stock, the investors share of cash dividends from the investee should be recorded as

  1. A deduction from the investors share of the investees profits.
  2. A deduction from the stockholders equity account, Dividends to Stockholders.
  3. Dividend income.
  4. A deduction from the investment account.

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