Noncontrolling investment accounting $($price different from book value$)$

On January $1,2022,$ an investor purchases for $$480,000$ a $15\%$ ownership in an investee. The investee$$s common stock has a readily determinable fair value. On January $1,2022,$ the book value of the investee$$s assets and liabilities equals $$1,080,000$ and $$300,000$ respectively. On that date, the appraised fair values of the investee$$s identifiable net assets approximated the recorded book values, except for a patent. On January $1,2022,$ the patent had a recorded book value of $$0$ an estimated fair value equal to $$96,000$ and a $10$ year remaining useful life. During the year ended December $31,2022,$ the investee company reported net income equal to $$72,000$ and dividends equal to $$48,000.$ On December $31,2022,$ the fair value of the investor$$s share of the investee is $$540,000.$

Assume the investor cannot exert significant influence over the investee. Determine the balance in the $$Investment in Investee$$ account at December $31,2022.$

Select one:

a$.$

$$482,160$

b$.$

$$480,000$

c$.$

$$540,000$

d$.$

$$564,000$