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Assuming that Arthur uses the equity method rather than the cost method, what adjustment should be made to the investment account in Haddon to account

Assuming that Arthur uses the equity method rather than the cost method, what adjustment should be made to the investment account in Haddon to account for unrealized profits on Haddon's sales to Arthur?
The account should be reduced by $48.
The account should be reduced by $192.
No adjustment is necessary.
The account should be reduced by $240.
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