Which of the following statements arplying to the use of the simple equity method versus the cost method is true? Select one: a. 0096 it no dividends were paid by the subsidiary, the investment account would have the same balance under both methods. b. The method used does not make any difference in consolidated financial statements. se c. An advantage of the simple equity method is that no amortization of excess adjustments needs to be made on the consolidated worksheet. d. Under the cost method, every change in subsidiary's retained earnings is recorded on a pro-rata basis in the investment account. 4 Fullerton Co. (Parent) is acquiring Irvine Inc (Subsidiary). Irvine Inc. has the following intangible assets and liabilities. - Goodwill $10,000 - Patent $10,000 on a product that is deemed to have useful life of 10 years - Customer list with an observable fair value of $40,000. - A 5-year operating lease with favorable terms with a discounted present value of $6,000 Warranty liability of $100,000. OCX