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Columbus Company owns 25% of Zanesville Inc. and accounts for the investment using the equity method. During the year, Zanesville Inc. reports a net loss

Columbus Company owns 25% of Zanesville Inc. and accounts for the investment using the equity method. During the year, Zanesville Inc. reports a net loss of $1,602,000 and pays total dividends of $73,800. Which of the following describes the change in Columbuss investment in Zanesville during the year?

A.

The investment increases by $326,700.

B.

The investment decreases by $232,750.

C.

The investment decreases by $418,950.

D.

The investment decreases by $400,500.

E.

None of the above

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