Keller Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. Keller has significant influence over Angel, so Keller will account for this investment using the equity method. Angel declared Net Income of $1,250,000 for the year. How will Angel's Net Income impact Keller's books?
A) Keller will increase the Investment account and Income from the Investment for $375,000.
B) Keller will increase Cash and increase Income from Investment for $375,000.
C) Keller will increase Cash and decrease the Investment Account for $375,000.
D) Keller will increase the Investment Account and increase Cash for $375,000.
Answer: A
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