Amount of income recognized under various methods of accounting for investments.

On January 1. Apollo Corporation acquired common stock of Venus Corporation.

At the time of acquisition, the book value and the fair market value of Venus Corporation's net assets were $500 million. During the year, Venus Corporation earned $80 million and declared dividends of $20 million. The market value of shares increased by 10 percent during the year. How much income would Apollo Corporation report for the year related to its investment under the assumption that it took the following actions?

a. Paid $73 million for 15 percent of the common stock and uses the market value method to account for its investment in Venus Corporation.

b. Paid $115 million for 15 percent of the common stock and uses the market value method to account for its investment in Venus Corporation.

c. Paid $150 million for 30 percent of the common stock and uses the equity method to account for its investment in Venus Corporation.

d. Paid $230 million for 30 percent of the common stock and uses the equity method to account for its investment in Venus Corporation. Amortize goodwill o\er ten years.

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