On January 2, 2021, Pod Company purchased 40% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021, Jobs reported net income of $840,000 and distributed dividends of $340,000. The ending balance in the Investment in Jobs Company account at December 31, 2021 was $640,000 after applying the equity method. What was the purchase price Pod Company paid for its investment in Jobs, Inc.?

Select one:

a.

$304,000

b.

$520,000

c.

$840,000

d.

$440,000

e.

$160,120