In the case of an investment in equity securities where the investor does not have significant influence and the investment is carried at fair value, a dividend from the investee is:
A. Income to the investor in the period of declaration.
B. A reduction of the carrying amount of the investment.
C. An expense to the investor in the period of declaration.
D. A direct increase to retained earnings of the investor to offset the direct decrease to retained earnings of the investee.
Answer: A
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