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Clark Corporation purchased 40% of IT Corporation for $340,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends

Clark Corporation purchased 40% of IT Corporation for $340,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $85,000. At year-end, IT Corporation reported net income of $425,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be:

$544,000.

$204,000.

$476,000.

$629,000.

$340,000.

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