In January 2014, Albert Corporation acquired 20 percent of the outstanding common stock of Peter Company for $1,120,000 . This investment gave Albert the ability to exercise significant influence over Peter. The book value of the acquired shares was $840,000 . The excess of cost over book value was attributed to an identifiable intangible asset that was undervalued on Peter's balance sheet and
that had a remaining useful life of ten years. For the year ended December 31 . 2014, Peter reported net income of $252,000 and paid cash dividends of $56,000 on its common stock. What is the proper carrying value of Albert's investment in Peter at December 31 . 2014?
a. $1,080,800
b. $1,092,000
c. $1,131,200
d. $1,181,600
C
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