Exhibit 13-2

On January 1, 2017, the Clutz Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess of purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported net income of $8,000,000 and paid cash dividends of $2,000,000 during 2017.

Refer to Exhibit 13-2. The investment in Nancy Company stock should be reported on Clutz's December 31, 2017, balance sheet at

a. $15,600,000.

b. $15,000,000.

c. $16,500,000.

d. $17,400,000.