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Management Studies

When the equity method is used to account for an investment in common stock of another corporation, the journal entry on the investor's books to record the receipt of cash dividends from the investee will:

a. include a debit to Cash and a credit to Dividend Revenue.

b. reduce the carrying value of the investment.

c. increase the carrying value of the investment.

d. be the same journal entry that would be recorded if the cost method were used to account for the investment.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91904448

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