Question: When using the equity method of accounting for associates, the carrying amount of the investment is increased to recognize the investor's share of the associate's

When using the equity method of accounting for associates, the carrying amount of the investment is increased to recognize the investor's share of the associate's profit. By the same token, the investment account is also reduced for distributions (i.e., dividends) received from the associate. Explain why the investment account is increased for the profit pickup earned by the associate and decreased when dividends are received from the associate?

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