The equity method of accounting for investments requires

A) a year-end adjustment to revalue the stock to lower of cost or market
B) the investment to be reported at its original cost
C) the investment to be increased by the reported net income of the investee
D) the investment to be increased by the dividends paid by the investee

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not fully control it.

Investee's Net Income

The total profit of a company in which another company has an investment interest, after all expenses and taxes have been subtracted.

Original Cost

The initial amount of money spent to acquire an asset, including purchase price and all expenses incurred to bring it to its intended use.