On January 2, Year 1, Barber Company purchased 6900 shares of Convell Company for $79,880. Convell Company has a total of 34,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $91,000 and $86,000 for Year 1 and Year 2, respectively. What is the book value of Barber's investment in Convell at the end of Year 2?
A. $114,280.
B. $79,880.
C. $68,150.
D. $115,280.
E. $103,550.
Answer: E
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