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If the Fair Value Method Is Used to Account for a Long-Term

Question 98

Multiple Choice

If the fair value method is used to account for a long-term investment in common shares and fair value changes are reported through other comprehensive income, dividends received should be


A) credited to the Long-term Equity investment account.
B) credited to the Dividend Revenue account.
C) debited to the Long-Term Equity Investment account.
D) recorded only when 20% or more of the shares are owned.

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