On january 1 pucket company paid 1.6 million for 50000, Ask an Expert

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On January 1, Pucket company paid 1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the investment in Harrison account found in Puckett's financial records as of December 31?

a. 1,724,000
b. 1,784,000
c. 1,844,000
d. 1,884,000

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