Dogma Ltd. records its investment in Fayer Co. at cost. During the year, Dogma received $20,000 in dividends from Fayer. How should Dogma record these dividends?
A) As dividend income in its statement of comprehensive income.
B) As an increase to the "Investment in Fayer Co." account on its statement of financial position.
C) As a decrease to the "Investment in Fayer Co." account on its statement of financial position.
D) As dividend income on its statement of changes in equity-retained earnings section.
Correct Answer:
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