Which of the following observations is consistent with the equity method of accounting

Which of the following observations is consistent with the equity method of accounting?
A.  Dividends declared by the investee are treated as income by the investor.
B.  It is used when the investor lacks the ability to exercise significant influence over the investee.
C.  It may be used in place of consolidation.
D.  Its primary use is in reporting nonsubsidiary investments.

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