Which of the following is not true when the fair value option is elected for an

Question

Which of the following is not true when the fair value option is elected for an investment that would normally be accounted for under the equity method?

Multiple Choice

A. No journal entry need be made to recognize the investor's portion of the investee's net income.

B. Unrealized holding gains and losses on that investment are recognized in net income.

C. No journal entry need be made to recognize the investor's portion of dividends paid by the investee.

D. All of these answer choices are true.

I already chose option A and it was marked incorrect. Please help.  

Explanation / Answer

No journal entry need be made to recognize the investor's portion of dividends paid by the investee. Option C is correct

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.