On January 1, 2017, Fargo Company purchased 30% of the common stock of Fairly Company for $80,000. The purchase was made at book value. Additional information for Fairly Company follows:
Year
Net Income
Dividends Paid
2017
$20,000
$24,000
2018
60,000
42,000
?
On Fargo's books, what would be the balance of Investment in Fairly Company at December 31, 2018?
A. $104,000
B. $63,400
C. $84,200
D. $60,200
Answer: C
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