Question: 83. Which of the following results in a decrease in the investment account when applying the equity method? A) Dividends paid by the investor. B)

83. Which of the following results in a decrease in the investment account when applying the equity method?

A) Dividends paid by the investor.

B) Net income of the investee.

C) Net income of the investor.

D) Share of gross profit on intra-entity inventory sales for the current year.

E) Purchase of additional common stock by the investor during the current year.

the right answer is D, why is it D and not A?

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