I have the answer but hope that someone can provide an explanation on how we got to the answer. Thanks!!!!!!!!!!!!!!!

Question 71 FR124: Calculate the investment balance to be reported on the balance sheet Cantle owns 30% of the shares of Rockton Inc. (Rockton). Cantle accounts for this significant influence investment using the equity method under ASPE. These shares were purchased on January 1, 20X5 and at that time, Cantle's controller correctly analyzed the purchase as follows Price paid Cantle's share of the book value of Rockton's net assets Purchase premium $ 450,000 (390,000) 60,000 Fair value differentials Inventor Equipment (remaining useful life 5 years Land (3 parcels of same Future income taxes Goodwill (49,500) 20,000 21,000) 14,120 S 23,620 value each Now assume that the only parcel of land sold by Rockton in the past 5 years was the one noted in the information above and that the book value of Rockton's net assets was $1,445,000 as at December 31, 20X6. In addition, assume that Rockton has not issued or redeemed any shares since Cantle acquired its interest in Rockton's shares, and that the tax rate remains at 25%. what amount would Cantle have reported in its balance as at December 31, 20X6 for its investment in Rockton? a) $530,750 O b) $433,750 C c) $450,000 d) $456,250 Question 71 FR124: Calculate the investment balance to be reported on the balance sheet Cantle owns 30% of the shares of Rockton Inc. (Rockton). Cantle accounts for this significant influence investment using the equity method under ASPE. These shares were purchased on January 1, 20X5 and at that time, Cantle's controller correctly analyzed the purchase as follows Price paid Cantle's share of the book value of Rockton's net assets Purchase premium $ 450,000 (390,000) 60,000 Fair value differentials Inventor Equipment (remaining useful life 5 years Land (3 parcels of same Future income taxes Goodwill (49,500) 20,000 21,000) 14,120 S 23,620 value each Now assume that the only parcel of land sold by Rockton in the past 5 years was the one noted in the information above and that the book value of Rockton's net assets was $1,445,000 as at December 31, 20X6. In addition, assume that Rockton has not issued or redeemed any shares since Cantle acquired its interest in Rockton's shares, and that the tax rate remains at 25%. what amount would Cantle have reported in its balance as at December 31, 20X6 for its investment in Rockton? a) $530,750 O b) $433,750 C c) $450,000 d) $456,250