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_____ When a Parent Uses the Equity Method of Accounting

Question 45

Multiple Choice

_____ When a parent uses the equity method of accounting for its investment in a 100%-owned subsidiary, the Investment account will be increased when the parent recognizes


A) Cash dividends declared by the subsidiary.
B) The receipt of cash in payment of dividends declared by the subsidiary.
C) The subsidiary's reported net income.
D) The subsidiary's reported net loss.
E) None of the above.

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