Crane, Inc. acquired 40% of Swifty Corporation's voting stock on January 1, 2021 for $880000. During 2021, Swifty earned $364000 and paid dividends of $226000. Crane's 40% interest in Swifty gives Crane the ability to exercise significant influence over Swifty's operating and financial policies. During 2022, Swifty earned $464000 and paid cash dividends of $126000 on April 1 and $126000 on October 1. On July 1, 2022, Crane sold half of its stock in Swifty for $624000 cash. The carrying amount of this investment in Crane's December 31, 2021 balance sheet should be $935200. $1025600 $880000 $1065600 Judd, Inc, owns 35% of Cosby Corporation. During the calendar year 2021, Cosby had net earnings of $300,000 and paid dividends of $30,000, Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting What effect would this have on the investment account, net income, and retained earnings, respectively? Understate, overstate, overstate Understate, understate, understate O Overstate, overstate, overstate O Overstate, understate, understate