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The fair value of Cameron Inc.s depreciable assets exceeds their book value by $50 million. The assets have an average remaining useful life of 15

The fair value of Cameron Inc.s depreciable assets exceeds their book value by $50 million. The assets have an average remaining useful life of 15 years and are being depreciated by the straight-line method. Lake Industries buys 30% of Camerons common shares. How will the situation described affect Lakes investment account in Cameron?

a.

Lake will reduce the investment by $3.3 million per year.

b.

Lake will increase the investment by $3.3 million per year.

c.

Lake will reduce the investment by $1 million per year.

d.

Lake will increase the investment by $1 million per year.

e.

It will not make a difference.

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