Proverb Inc. owns 10% of Syntax Company, which it purchased on January 1, 2021 for $250,000. Proverb has the right to appoint three of the ten seats on Syntaxs board of directors as well as the ability to veto material purchase or sale contracts. During 2021, Syntax had net earnings of $40,000 and paid dividends of $6,000. Proverb's accountant mistakenly assumed Proverb lacked significant influence over Syntax and used the cost method instead of the equity method. What is the impact on Proverbs investment account and net income, respectively? Investment Net Income a. Understated Understated b. Overstated Understated c. Understated Overstated d. Overstated Overstated