4 points Cruises, Inc. purchased 35% of Libby Corporation on 1/1/2022. At the date of acquisition, Libby's net assets had a fair value of $90,000, its book value was aho $90,000. During the calendar year 2022. Libby had net earnings of $30,000 and paid cash dividends of $40,000. Cruise mistakenly recorded these transactions using the fair value method rather than the equity method of accounting, What effect would this have on the investment account and net income respectively at the end of 2022? Assuming that the fair value of Libby's total outstanding shares is 5$90,000 by the end of 2022. O Overstate, understate O Understate, understate O Overstate, overstate O Understate, overstate