3. On January 1, Pop Company paid $300,000 for a 20 percent interest in Son Corporation’s voting common stock, at which time Son’s stockholders’ equity consisted of $600,000 capital stock and $400,000 retained earnings. Pop was not able to exercise any influence over the operations of Son and accounted for its investment using the cost method. During the year, Son had net income of $200,000 and paid dividends of $150,000. The balance of Pop’s Investment in Son account at December 31 is:

a $330,000 b $310,000 c $307,500 d $300,000