On January 1, 2016, Barney, Inc., paid $300,000 for a 30% interest in Morris Corporation. This investee had assets with a book value of $1,350,000 and liabilities of $700,000. A patent held by Morris was undervalued by $120,000. The patent had a six year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2016, Morris reported income of $150,000 and paid dividends of $30,000 while in 2017 it reported income of $180,000 and dividends of $50,000.

What is the balance in Equity Investment at December 31, 2017?

Select one:

A. $381,000

B. $375,000

C. $363,000

D. $324,000