Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the

Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the



a. investor sells the investment.
b. investee declares a dividend.
c. investee pays a dividend.
d. earnings are reported by the investee in its financial statements.


Answer: earnings are reported by the investee in its financial statements


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