Nichols Enterprises has an investment in 25,500 shares of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott shares are publicly traded on the New York Stock Exchange, and The Wall Street Journal quotes a price for those shares of $10 a share, but Nichols believes the market has not appreciated the full value of the Elliott shares and that a more accurate price is $22 a share. Nichols should carry the Elliott investment on its balance sheet at:

A $408,000, the midpoint of Nichols's range of reasonably likely valuations of Elliott.

B $561,000.

C Either $255,000 or $561,000, as either are defensible valuations.

D $255,000.