Ace purchases 40 percent of Baskett Company on January 1 for $500,000. Although Ace did not use it, this acquisition gave Ace the ability to apply significant influence to Basketts operating and financing policies. Baskett reports assets on that date of $1,400,000 with liabilities of $500,000. One building with a seven-year life is undervalued on Basketts books by $140,000. Also, Basketts book value for its trademark (10-year life) is undervalued by $210,000. During the year, Baskett reports net income of $90,000 while paying dividends of $30,000. What is the Investment in Baskett Company balance (equity method) in Aces financial records as of December 31? a. $504,000. b. $507,600. c. $513,900. d. $516,000. Show calculations please