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Which of the following does NOT properly describe the accounting for the investment using the equity method when the fair value options has been elected?

Which of the following does NOT properly describe the accounting for the investment using the equity method when the fair value options has been elected?

A) The carrying value of the investment is the fair value of the investment

B) A retroactive adjustment is required if the investor switches from the fair value method

C) Dividends received by the investor increase net income

D) Unrealized gains and losses resulting from changes in market value are reported in the investor's income statement

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