Problem

When an investor elects the fair-value option for a significant influence investment, cash...

When an investor elects the fair-value option for a significant influence investment, cash dividends received by the investor from the investee should be recorded as

a. A deduction from the investor’s share of the investee’s reported income.

b. A deduction from the investment account.

c. A reduction from accumulated other comprehensive income reported in stockholders’ equity.

d. Dividend income.

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