Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $300,000 on January 2, 2021. During 2021, Darby Company declared dividends of $75,000 and reported earnings for the year of $450,000.

If Blanco Company used the equity method of accounting for its investment in Darby Company, its Equity Investment (Darby) account at December 31, 2021 should be:

Select one:

a.

$435,000

b.

$450,000

c.

$495,000

d.

$510,000

e.

$375,000