On June 1, 2017, Saxon Co. acquired a 10% interest in HD Co. for $160,000 cash when HD's equity consisted of $400,000 capital stock and $100,000 retained earnings. At the date of acquisition Book values of HD's net assets equaled their fair values. HD's net income and dividends for 2017 and 2018 as follows: 2017 2018 Net income $ 16,000 $ 20,000 Dividends paid 5,000 5,000 Assume that Saxon Co. applied the fair value (cost) method of accounting for its investment in HD Co. The balance of the investment in HD account at December 31, 2018 is: Select one: O a. $153,400 O b. $166,600. O c. $160,000 O d. $190,000 L