Diamond Investments, Inc. purchased 40% of the common stock of Ivory Corporation on March 1, 2016. Ivory Corporation reports a net income of $675,000 for the year 2017. Which of the following is true of the balance sheet on December 31, 2017?
A) Total assets will remain unchanged.
B) Total liabilities will decrease.
C) Total equity will increase.
D) Cash will increase.
C
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