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EmeraldInvestments, Inc. purchased40% of the common stock of Diamond Corporation on March1, 2018. Diamond Corporation reports a net income of$675,000 for the year 2019. Which

EmeraldInvestments, Inc. purchased40% of the common stock of Diamond Corporation on March1, 2018. Diamond Corporation reports a net income of$675,000 for the year 2019. Which of the following is true of the balance sheet on December31, 2019?

A. Total assets will remain unchanged.

B. Total liabilities will decrease.

C. Total equity will increase.

D. Cash will increase.

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