Which of the Following Results in a Decrease in the Equity

Which of the following results in a decrease in the Equity in Investee Income account when applying the equity method?

A) Dividends paid by the investor.
B) Net income of the investee.
C) Unrealized gain on intra-entity inventory transfers for the current year.
D) Unrealized gain on intra-entity inventory transfers for the prior year.
E) Extraordinary gain of the investee.

Correct Answer:

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