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On January 1, 2007. Firewire Company acquired 40 percent of Browser Company's common stock at underlying book value. During 2007 and 2008. Browser reported net
On January 1, 2007. Firewire Company acquired 40 percent of Browser Company's common stock at underlying book value. During 2007 and 2008. Browser reported net income of $90,000 and $50,000 and paid dividends of $40,000 and $60.000, respectively. Firewire reported a balance in its investment account of $230,000 on December 31, 2008. It uses the equity method in accounting for this investment. Based on the preceding information during 2008. Firewire will report: O a. a decrease in the investment account balance of $4.000. O b. a decrease in the investment account balance of $8.500. O c. an increase in the Investment account balance of $20.000. d. an increase in the investment account balance of $16,000. Clear my choice
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