company owns 40% of S Corporation and During the year S had net income of 200000 and paid dividends of 50000. Pused the cost method of accounting What effect would this have on the investment account and net income and retained earnings respectively? Select one: O a. understate, understate, understate O b. overstate, understate, understate O c. overstate, overstate, overstate d. understate, overstate, overstate.

company owns 40% of S Corporation and During the year S had net income of 200000 and paid dividends of 50000. Pused the cost method of accounting What effect would this have on the investment account and net income and retained earnings respectively? Select one: O a. understate, understate, understate O b. overstate, understate, understate O c. overstate, overstate, overstate d. understate, overstate, overstate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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