Answer:
B. Decrease in Equity Investment
Step-by-step explanation:
As we know that
At the time of payment of dividend it reduces the cash balance plus we debited the dividend payable.
The journal entry is also shown for better understanding
Dividend payable A/c $122,838
To Cash A/c $122,838
(Being the dividend is paid)
So as per the cost method, the dividend declared by a subsidiary reduced the equity investment
Therefore, the second option is correct