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asap Gerken Company concluded at the beginning of 2024 that the company's...

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Accounting

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Gerken Company concluded at the beginning of 2024 that the company's ownership interest in DillCo had increasod to the point that it became appropriote to begin using the equity method to account for the investment. The balance in the investment account is $72,000 at the time of the change, and accountants working with company records determined that the balance would have been $87,000 if the account had been adjusted for investee net income and dividends as prescribed by the equity method. After implementing the change to the equily method, if financhal stafements were prepared: Multiple Choice The occounts will be unchanged because no adjutment is nocessary net lacome and retained earnings will be Nigher by $15.000 not income and rotained earrings will be higher by $87,000 net income will be unchanged, and retained eseringe will be hioher by $15,000

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