Zeng Jewelers purchased $3,000,000$ of the outstanding $10,000,000$ shares of Angel &$"$

"Assoc iates. Zeng has significant influence over Ange l$,$ so Zeng will account for this investment using the equity method. On the purchase date,Angel had net assets with a book value of$"$

$"$$$7,300,000$ and a fa ir value of $$8,000,000.$ The difference in fair value is a result of the higher fair value of equipment than its book value. The remaining useful life of this equipment is $25$ years. Assuming this investment wa s purchased on $1/1,$ how will Zeng record the difference in$"$

net assets for this investment on $12/31?$

a$.$ The higher fa ir va lue will allow Zeng to increase the investment account and income

"from the investment by $$28,000$ each year $."$

$"$b$.$ The additional depreciat ion expense will decrease the income from the investment as well as the Investment account by $$8,400."$

$"$c$.$ The higher fair va lue will allow Zeng to increase the investment account and income from the investment by $$8,400$ each year."

d$.$ The additional depreciation expense will decrease the income from the investment as

"well as the Investment account by $$28,000."$