Invest Company owns 30 percent of All Corporation. During the year, All had net earnings of $200,000 and paid dividends of $18,000. Invest mistakenly recorded these transactions using the cost method rather than the equity method. What effect would this have on the investment account, net earnings, and retained earnings, respectively?

a Understate, overstate, overstate

b Overstate, understate, understate

c Overstate, overstate, overstate

d Understate, understate, understate

Answer rating: 100% (QA)

Option d is correct Invest Company own 30 interest in A Corporation During the ye... View the full answer