On January 1, 2019, an investor purchases 18,000 common shares of an investee at $12 (cash) per share. The shares represent 20% ownership in the investee. The investees common stock has a readily determinable fair value. On January 1, 2019, the book value of the investees assets and liabilities equals $1,230,000 and $150,000, respectively. On that date, the appraised fair values of the investees identifiable net assets approximated the recorded book values. During the year ended December 31, 2019, the investee company reported net income equal to $50,000 and dividends equal to $15,000. On December 31, 2019, the fair value of the investees stock is $16 per share.

Noncontrolling investment accounting (price equals book value)

Assume the investor cannot exert significant influence over the investee. Determine the balance in the Investment in Investee account at December 31, 2019.

a. $216,000

b. $223,000

c. $288,000

d. $295,000