39. On January 1, 2020, Lark Corporation purchased 35% of the common stock outstanding of Dinc Corporation for $700,000. During 2020, Dinc Corporation reported net income of $200,000 and paid cash dividends of $100,000. The balance of the Stock InvestmentsRun account on the books of Lark Corporation at December 31, 2020 is a. $700,000. b. $735,000. c. $770,000. d. $665,000. 40. If a company owns 55% of another company, how should the investment be accounted for? a) Equity method b) Cost method c) Consolidation d) It should not be shown at all