On January 1, 2019, Reston Company purchased 40% of Ace Corporation's common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Restons investment account was $760,000 at December 31, 2019. Ace reported net income of $700,000 for the year ended December 31, 2019, and paid common stock dividends totaling $300,000 during 2019. How much did Reston pay for its 40% interest in Ace?

a. $400,000.

b. $600,000.

c. $800,000.

d. $520,000.