8. On January 2, Pam Company purchased a 30 percent interest in Sun Company for $250,000. On this date, the book value of Sun’s stockholders’ equity was $500,000. The carrying amounts of Sun’s identifiable net assets approximated fair values, except for land, whose fair value exceeded its carrying amount by $200,000. Sun reported net income of $100,000 and paid no dividends. Pam accounts for this investment using the equity method. In its December 31 balance sheet, what amount should Pam report for this investment?

a $210,000 b $220,000 c $270,000 d $280,000