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DeMilo, Inc., owns 100 percent of the 48,000 outstanding shares of Ricardo, Inc. DeMilo currently carries...

DeMilo, Inc., owns 100 percent of the 48,000 outstanding shares of Ricardo, Inc. DeMilo currently carries the Investment in Ricardo account at $517,900 using the equity method. Ricardo issues 2,000 new shares to the public for $14.25 per share. How does this transaction affect the Investment in Ricardo account that appears on DeMilo’s financial records? Investment in Ricardo should be increased by _______

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