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company owns 40% of S Corporation and During the year S had net income of 200000 and paid dividends of 50000. P used the cost

company owns 40% of S Corporation and During the year S had net income of 200000 and paid dividends of 50000. P used the cost method of accounting What effect would this have on the investment account and net income and retained earnings respectively? :

a. understate, understate, understate

b. overstate, overstate, overstate

c. understate, overstate, overstate.

d. overstate, understate, understate

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