Company C Has a Significant Influence Investment in Company D

Company C has a significant influence investment in Company D, and appropriately reports its share of Company D's reported income as equity in net income. Under what circumstances will Company C adjust Company D's reported income to determine its share of that income, in the first year the investment is held?

A) Company D declared and paid dividends in excess of its reported net income in the first year.
B) Company C's acquisition cost was more than its share of Company D's book value, and the difference is attributable to indefinite life intangibles that are impaired in the first year.
C) Company D reported a loss in the first year.
D) Company C's acquisition cost was more than its share of Company D's book value, and the difference is attributable to previously unreported customer lists with a 3-year life.