On April 5, 2022, Pod Company purchased a 80 percent interest in Seed Company for $485,000. Seed reported net income of $117,000 for 2022 and declared and paid a dividend of $23,000.

Pod accounts for this investment by recording journal entries using the equity method. In its December 31, 2022, balance sheet, what amount should Pod report as its investment in Seed?

a. $463,200.

b. $482,000. c. $560,200. d. $579,000.