Equity method, Income Statement question

CFA Level II FRA
#1

From Kaplan:

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So we don’t subtract the dividends received when calculating the income statement amount under the given scenario?

#2

Dividends are considered a return of capital, not a return on capital.

1 Like
#3

Good grief, I may as well go back to the 6th grade. This module is making me myopic.

#4

If you do, play basketball or volleyball.

1 Like
#5

:laughing:!

#6

And when using the Acquisition method, the subsidiary’s Assets and Liabilities are reported at Fair Value, correct?