Under the equity method,

A) the receipt of dividends from the investee results in an increase in the investment account.
B) the receipt of dividends from the investee results in a credit to the Dividend Income account.
C) the receipt of dividends from the investee results in an increase in the investment account and a credit to the Dividend Income account.
D) the receipt of dividends from the investee reduces the carrying amount of the investment account.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control.

Investment Account

A financial account that holds securities, cash, and other investments for investors, typically managed by a financial institution or investment firm.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's earnings to its shareholders at set intervals.