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Equity method of accounting for investments

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Reference no: EM132203938

The equity method of accounting for investments in common stock requires that the investor's earnings be

A. Increased when the investor recognizes periodic amortization of goodwill related to the purchase.

B. Increased when dividends are declared and paid by the investee.

C. Adjusted for changes in the fair value of the investee's common stock.

D. Decreased when a loss is declared by the investee.

Reference no: EM132203938

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