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On January 1, 2020, Crane Industries acquired a 15% interest in Blossom Corporation through the purchase of 8000 shares of Blossom Corporation common stock for

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On January 1, 2020, Crane Industries acquired a 15% interest in Blossom Corporation through the purchase of 8000 shares of Blossom Corporation common stock for $200000. During 2020, Blossom Corp. paid $55000 in dividends and reported a net loss of $85000. Crane is able to exert significant influence on Blossom. However, Crane mistakenly records these transactions using the cost method rather than the equity method of accounting. Which of the following would show the correct presentation for Crane's investment using the equity method? Investment Account Net Earnings (loss) o $85000 ($30000) O $179000 ($12750) O $187250 ($12750) O $179000 ($4500)

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