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Explain how the balance sheet and income statement of a

Explain how the balance sheet and income statement of a company are affected in each of the following independent situations when the investment is accounted for using the equity method.

The company they invested in earns a profit for the year
The company they invested in has a net loss for the year
The company they invested in pays a cash dividend

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Finance Basics: Explain how the balance sheet and income statement of a

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