If the investor company owns 25 percent of the investee company's outstanding voting shares and uses the equity method, a $50,000 net loss by the investee company would result in:
A) A debit to the loss from investments account for $50,000
B) A credit to the investment in shares account for $12,500
C) A debit to the investment in shares account for $12,500
D) No entry on the investor's books
Correct Answer:
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