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Jose, Inc

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Jose, Inc., owns 35% of Cool Corporation. During the calendar year 2021, Cool Corporation had net earnings of $300,000 and paid dividends of $30,000. Jose mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively? Understate, overstate, overstate Understate, understate, understate Overstate, understate, understate Overstate, overstate, overstate