On January 2, Koo Company purchased a 25 percent interest in Poo Company for $240,000. On this date, the book value of Poos stockholders equity was $400,000. The carrying amounts of Poos identifiable net assets approximated fair values, except for land, whose fair value exceeded its carrying amount by $150,000. Poo reported net income of $100,000 and paid no dividends. Koo accounts for this investment using the equity method. In its December 31 balance sheet, what amount should Koo report for this investment?

a.

$210,000

b.

$265,000

c.

$280,000

d.

$240,000