Which of the below statements is​ FALSE? A. Increases in working capital accounts necessary to support a project add upfront​ costs, but also provide for cost reductions at the end of the project. B. Whenever a new product competes against a​ company's already existing products and reduces the sales of other​ products, opportunity costs occur. C. A synergy gain occurs when a new product can be introduced that complements another current product so that sales for this current product increases. D. Erosion can provide cost savings.

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?