Under the partial equity method, the parent recognizes income when
A) Dividends are received from the investee.
B) Dividends are declared by the investee.
C) The related expense has been incurred.
D) The related contract is signed by the subsidiary.
E) It is earned by the subsidiary.

Question

Quizplus · Accepted Answer

Under the partial equity method, the parent recognizes income when it is earned by the subsidiary, reflecting the parent's share of the subsidiary's earnings.

Under the Partial Equity Method, the Parent Recognizes Income When