Question: Multiple Choice Question 81 If the cost method is used to account for a long-term investment in common stock, the earning of net income by

Multiple Choice Question 81 If the cost method is used to account for a long-term investment in common stock, the earning of net income by the investee is considered a proper basis for recognition of Income by the investor. net income of the investee is not considered earned by the investor until dividends are declared by the investee. it is presumed that the investor has significant influence on the investee. the Investment account may be, at times, greater than the acquisition cost. Click If you would like to Show Work for this question: Oren Show Work

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