(Answered) Assume that horicon corp acquired 25 of the common stock of

Finance

Assume that Horicon Corp. acquired 25% of the common stock of Sheboygan Corp. on January 1, 2012, for $300,000. During 2012, Sheboygan Corp. reported net income of $160,000 and paid total dividends of $60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2012, will be:

(a) $300,000.

(b) $325,000.

(d) $340,000.

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