On January 1, Belleville Company paid $2,970,000 to acquire 99,000 shares of O'Fallons voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $3 per share dividend during the year and reported net income of $580,000. What is the balance in the Investment in O'Fallon account found in Bellevilles financial records as of December 31?

Multiple Choice

a) $3,025,000.

b) $2,905,000.

c) $3,202,000.

$2,965,000.