Blau Corporation invests $302,500 in Hills Corporation, buying 80 percent of the voting stock. Hills pays Blau $20,000 in cash dividends and earns a net income of $130,000 during 2009 . On the consolidated balance sheet, the balance in the investments account representing Blau's interest in Hills will be
a. $432,500.
b. $412,500.
c. $0 .
d. $302,500.
C
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