Problem

When recording dividends received from a stock investment accounted for using the equity m...

When recording dividends received from a stock investment accounted for using the equity method, which of the following statements is true?

a. Total assets are increased and net income is increased.

b. Total assets are increased and total stockholders' equity is increased.

c. Total assets and total stockholders' equity do not change.

d. Total assets are decreased and total stockholders' equity is decreased.

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