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Huron Inc. owns 100% of Erie Ltd. During the year, Erie earned a net income of $40,000 and declared and paid dividends of $10,000. Assuming

Huron Inc. owns 100% of Erie Ltd. During the year, Erie earned a net income of $40,000 and declared and paid dividends of $10,000. Assuming that Huron uses the equity method, what effect would the above information have on Huron's Investment in Erie account?

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