On January 1, 2013, dawson, incorporated paid $100,000 for a 30% interest in sacco corporation. This investee had assets with a book value of $550,000 and liabilities of $ 300,000. A patent held by sacco having a book value of $10,000 was actually worth $40,000 with a six year remaining life. Any goodwill associated with this acquistion is considered to have an indefinite life. During 2013, sacco reported income of $50,000 and paid dividends of $20,000 while in 2014 it reported income of $75,000 and paid dividends of $30,000. Assume Dawson has the ability to significantly influence the operations of sacco. The balance in the Investment in Sacco account at December 31, 2013 is A. 100,000 B. 112,000 C. 106,000 D. 107,500 E. 140,000