[Anonymous]

I am taking my test this afternoon and have 1 quick question

In equity method – common share dividends are a deduction from your investment, what do we do with the preferred stock dividends? Are those considered income to the person with the shares under equity method?

I know we have to deduct the preferred dividends from the NI to get available to common stockholders, but dont know what to do with the $ we get for preffered dividends

help!