on 9 out of 2.0 ng question Pinkerton Inc. owns 10% of Sable Company. In the most recent year, Sable had net earnings of $40,000 and paid dividends of $6,000. Pinkerton's accountant mistakenly assumed Pinkerton had considerable influence over Sable and used the equity method instead of the cost method. What is the impact on Pinkerton's investment account and net earnings, respectively? Select one: O a. By using the equity method, the accountant has understated the investment account and overstated the net earnings O b. By using the equity method, the accountant has overstated the investment account and understated the net earnings. O c. By using the equity method, the accountant has understated the investment account and understated the net earnings. O d. By using the equity method, the accountant has overstated the investment account and overstated the net earnings. 10 A subsidiary can be excluded from consolidation it: out of 20 Select one O a control does not rest with the majority owner Ob the subsidiary is in legal reorganization O the subsidiary is operating under severe foreign exchange restrictions, d. All of the above are correct