Noncontrolling investment accounting $($price equals book value$)$

On January $1,2022,$ an investor purchases for $$540,000$ a $20\%$ ownership in an investee. On January $1,2022,$ the book value of the investee's assets and liabilities equals $$3,330,000$ and $$630,000$ respectively. On that date, the

appraised fair values of the investee's identifiable net assets approximated the recorded book values. During the year ended December $31,2022,$ the investee company reported net income equal to $$180,000$ and dividends

equal to $$54,000.$ On December $31,2022,$ the fair value of the investor's share of the investee is $$720,000.$

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$.$ $$745,200$

b$.$ $$540,000$

c$.$ $$720,000$

d$.$ $$565,200$