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On January 1 , 2 0 X 5 , Kimba Co . paid $ 5 0 0 , 0 0 0 for 2 0 ,

On January 1,20X5, Kimba Co. paid $500,000 for 20,000 shares (15% of the total outstanding shares) of Flathead Co.s common stock. Kimba does not have the ability to exercise significant influence over Flathead. Flathead declared and paid a dividend of $0.50 a share to its stockholders during 20X5. Flathead reported net income of $260,000 for the year ended December 31,20X5. The fair value of Flathead Co.s stock at December 31,20X5, is $27 per share.
What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Flathead that will be included on Kimbas balance sheet at December 31,20X5?
$530,000
$540,000
$569,000
$579,000

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