On January 1, 20X1, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000. At the time of investment, Vapor Companys net assets were $200,000. During 20X1, Vapor Company earned $80,000 and declared a dividend of $40,000. Ramsey accounted for the investment under the equity method.

What is the balance in the investment account as of December 31, 20X1?

Multiple Choice

$84,000

$56,000

$70,000

$98,000