Able Company reports its income from investments under the equity method and recognized income of $15,000 from

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Question:

Able Company reports its income from investments under the equity method and recognized income of $15,000 from its investment in Tech Company during the current year even though no dividends were declared or paid by Tech Company during the year. On Able Company’s statement of cash flows in which the operating activities section is prepared under the indirect method, the $15,000 must

A) Be shown as inflow under financing activities.

B) Be shown as inflow under investing activities.

C) Not be shown.

D) Be shown as a deduction from net income under operating activities.