When using the equity method, receipt of cash dividends increases the carrying amount (book value) of an investment in equity securities.

Name: When using the equity method, receipt of cash dividends increases the carrying amount (book value) of an investment in equity securities.
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When using the equity method, receipt of cash dividends reduces the carrying amount (book value) of an investment in equity securities, as it represents a return of the investor's original investment.

When Using the Equity Method, Receipt of Cash Dividends Increases