Beatty, Inc. acquires 100% of the voting stock of Gataux Company on January 1, 2017 for $80,000, consisting of S20,000 in cash and 6,000 shares of stock. A contingent payment of $12,000 in cash will be paid on April 1, 2018 if Gataux generates cash flows from operations of $26,500 or more in the next year. Beatty estimates that there is a 30% probability that Gataux will generate at least $26,500 next year, and uses an interest rate of 4% to incorporate the time value of money. The fair value of $12,000 at 496, using a probability-weighted approach, is S3,461. A contingent payment of $20,000, payable in stock, will be paid to the former owners of Gataux on April 1, 2018 if the market value of Beatty stock drops below $10 per share. Beatty estimates there is a 15% probability that its share price will not exceed that threshold. Using the same interest rate and probability-weighted approach, Beatty calculates the market value of the stock contingency to be $2,884 What will Beatty record as its Investment in Gataux on January 1, 2017? A) S506,345 B) S503,461 C) S546,500 D) S500,000 E) S532,000