if-an-investee-reports-a-net-loss-of-200000-and-the-investor-owns-30-of-the-inve

Question

If an investee reports a net loss of $200,000 and the investor owns 30% of the investee, how is the investment account affected?

Accepted Answer

The investment account is decreased by $60,000.

Answer

The investment account is decreased by $200,000.

Answer

The investment account is increased by $60,000.

Answer

The investment account is unaffected.

If an investee reports a net loss of \$200,000 and the investor owns 30% of the investee, how is the investment account affected?