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Sweetwater Water Sports owns 3 5 % of Surfside Surf Shop's voting stock. In Year 1 , Surfside recorded net income of $ 3 0
Sweetwater Water Sports owns of Surfside Surf Shop's voting stock. In Year Surfside recorded net income of $ and paid dividends of $ If Sweetwater mistakenly recorded these transactions using the fair value method rather than the equity method, how would this affect the balance of their investment account, net income, and retained earnings, respectively?
Understate, understate, understate
Understate, overstate, overstate
Overstate, understate, understate
Overstate, overstate, overstate
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