Chapter 17, Problem 19Q

To determine

Investments: To invest is to give the money with the intention of earning some monetary gains in future.

Equity method: When the investor has a significant influence on the profits of the investee, this method is used.

Dividends: Distributing the earnings of the company decided by the board of directors to a class of shareholders is called as dividends. It is majorly in the form of cash payments, shares or other assets.

To determine the accounting that should be made for dividends received from these investments, subsequent to the date of investment used equity method to account for investments in stock.