Obtain Verizons 2021 Annual Report online. Review the financial statements and the notes to the financial statements.

Assume Verizon has a 30% owned investee. Also assume that the investee paid Verizon $8M in dividends and Verizon recorded the following journal entry:

Cash $11M Dividend Income $11M

What would be the effect on the following items on Verizons financials (overstated, understated, or no effect):

Circle one:

a) Working Capital OS US NE

b) Net Income OS US NE

c) Total Assets OS US NE

d) Retained Earnings OS US NE