Olivia Co owns 5,600 of the 14,000 outstanding shares of Hobbitt Corp common stock and exercises significant influence over the company. During 2011, Hobbitt earns $$90,000 and pays cash dividends of $25,000 If the beginning balance in the investment account was $190,000, the balance at December 31, 2011 should be:
a. $192,000
b. $172,000
c. $180,000
d. $216,000
D
$190,000+40%*$90,000-40%*$25,000
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