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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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