Under the equity method the Stock Investments account is credited when the

A) investee reports net income.
B) investee reports a net loss.
C) investment is originally acquired.
D) investee reports net income and when the investment is originally acquired.

Equity Method

An accounting technique used when a company holds significant influence over another company but does not have full control, involving recording investments at original cost and adjusting for the share of profit or loss.

Stock Investments

Financial assets representing ownership in a company or corporation, typically bought and sold on stock exchanges.

Investee

A company or entity in which an investor holds a minority interest, typically through the ownership of shares.