42. Cleaverland purchased 100% of Omaha on January 1, 2019 for $650,000. On that date, Omaha's stockholders' equity was $650,000, and the recognized book values of Ottowa's individual net assets approximated their fair values. Omaha had net incomes of $150,000 and $190,000 for 2019 and 2020, respectively. The subsidiary paid dividends amounting to $30,000 in both years. Cleaverland uses the cost method to account for its pre-consolidation investment in Omaha. What was the balance in Equity Investment at December 31, 2020? a. $650,000 b. $710,000 C. $990,000 d. $930,000 Answer: a