Queen Ltd. reports its investment in Kramer Co. on an equity basis. During the year, Queen received $15,000 in dividends from Kramer. How should Queen report these dividends?
A) As dividend income on its statement of changes in equity-retained earnings section.
B) As dividend income in its statement of comprehensive income.
C) As an increase to the "Investment in Kramer Co." account on its statement of financial position.
D) As a decrease to the "Investment in Kramer Co." account on its statement of financial position.
Correct Answer:
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