On January 1, 20X7, Ute Corporation acquired 30 percent of the outstanding shares of Cougar Corporation for $200,000 cash. Cougar Company reported net income of $120,000 and paid dividends of $30,000 for both 20X7 and 20X8. The fair value of shares held by Cougar was $210,000 and $255,000 on December 31, 20X7 and 20X8 respectively. Based on the preceding information, what amount will be reported by Ute (on its standalone financial statements) as its investment in Cougar for 20X8, if it used the equity method of accounting?

$200,000

$227,000

$254,000

$380,000