Meyer Company purchased 100 shares of the Smith Company at their carrying amount. During the next year, Smith earned $1.25 per share and paid a $2.00 per share dividend. If Meyer did not elect the fair value option but can exercise significant influence over Smith, it should

Group of answer choices

Reduce the carrying amount of its investment in Smith Co. by $2.00 per share under the fair-value method.

Reduce the carrying amount of its investment in Smith Co. by $.75 per share.

Increase the carrying amount of its investment in Smith Co. by $3.25 per share.

Not adjust the carrying amount of its investment in Smith Co. if the equity method is used.