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Blanco Company purchased 2 0 0 of the 1 , 0 0 0 outstanding shares of Darby Company's common stock for $ 6 0 0

Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2,2025. In 2025, Darby declared dividends of $100,000 and reported earnings of $400,000. If Blanco uses the fair value method of accounting for its investment in Darby, the balance in Equity Investments (Darby) on December 31,2025 should be
a. $580,000.
b. $660,000.
c. $600,000.
d. $680,000

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