On January 1, 2022, an investor purchases for $300,000 a 20% ownership in an investee. The investees common stock does not have a readily determinable fair value. On January 1, 2022, the book value of the investees assets and liabilities equals $1,850,000 and $350,000 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, 2022, the investee company reported net income equal to $100,000 and dividends equal to $30,000. On December 31, 2022, the fair value of the investors share of the investee is $400,000.

Assume the investor can exert significant influence over the investee. Determine the balance in the Investment in Investee account at December 31, 2022.

Select one:

a. $300,000

b. $400,000

c. $414,000

d. $314,000