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
C) dividend revenue
D) investment revenue

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profits and losses.

Dividends Received

Payments shareholders receive from a company’s earnings, typically distributed in cash or additional stocks.

Investment Revenue

Investment revenue is income generated from various types of investments, including dividends from stocks, interest on bonds, or income from rental properties.