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ABC Corporation does not have a significant influence over its 10% investment in Yazd Corporation. If Yazd completed its first year following the acquisition with

ABC Corporation does not have a significant influence over its 10% investment in Yazd Corporation. If Yazd completed its first year following the acquisition with $10,000 net income and paid $12,000 dividend, how this information affects ABCs account of Investment in Yazd Corporation?

a.

Investment in Yazd is increased by $2000.

b.

Investment in Yazd is decreased by $2000

c.

Investment in Yazd is decreased by $200

d.

Investment in Yazd is not affected due to using cost method.

e.

None of these answers is correct.

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