On January 1, 20x1, Circle Corporation paid $900,000 for 80,000 shares of Birch Company's common stock, which represents 30% of Birch's outstanding common stock. Birch reported income of $300,000 and paid a cash dividend of $100,000 during 20x1. Assuming the fair market value of Birch Company's depreciable assets is equal to the book value at the time of the stock purchase. Circle should report the investment in Birch Company on its December 31, 20x1 balance sheet at $900,000 $990,000 O $960,000 $1,200,000