Under the equity method, if an investee company generates net income, the investor company:

(a) does not recognize any share of the net income
(b) records its proportionate share of the net income as dividend income
(c) records its proportionate share as an increase in its investment account
(d) records its proportionate share as an unrealized gain

Ans: (c) records its proportionate share as an increase in its investment account

Business

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