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on januayr 1, 2017, the leaf company acquired a 5% interest in the Trunk Corporation through the purchase of 100,000 shares of Trunk's Common stock

on januayr 1, 2017, the leaf company acquired a 5% interest in the Trunk Corporation through the purchase of 100,000 shares of Trunk's Common stock for $640,000; the investment is recorded on Leaf's books as available for sale. During 2017, Trunk paid $40,000 in dividends and reported net income of $100,000. The market price of Trunk's common stock was $6.20 per share on Dec. 31, 2017. Leaf should report the investment in the Trunk Corporation on its Dec. 31, 2017, balance sheet as: A. 620,000 B. 627,000 C. 640,000 D. 645,000 Explain

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