Jarden Tech owns 30% of Stark Inc. and accounts for the investment using the equity method. During the year, Stark reports a net loss of $1,250,000 and pays total dividends of $35,000.
Which of the following describes the change in Jarden's investment in Stark during the year?
A) The investment increases by $7,500
B) The investment decreases by $1,225,000
C) The investment decreases by $367,500
D) The investment decreases by $385,500
Correct Answer:
Verified
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