Under the equity method, dividends received by the investor should be recorded as a. a reduction in the carrying value of the investment b. an addition to the carrying value of the investment 20. c. dividend revenue d. investment revenue 21. Under the equity method, a receipt of cash dividends by the investor would increase total assets and stockholders' equity b. a. increase total assets and liabilities c. decrease the investment account d. increase the investment account 22, David Company cash dividends of 320,000. What effect would this have on David's owns 30% of Ralph Company During 2018, Ralph reported earnings of S500 000 and paid investment account and net income? Net Income +$ 96,000 +$ 96,000 +$ 96,000 +$150,000 I. +$150,000 +S 54,000 +$ 54,000 IV. a. I (Deduct 3 points for each incorrect answer)