On1/1/2020,K Company purchased a 50 % interest in P Company for $200,000.

P reported net income of $100,000 for 2020 and declared and paid a dividend $30,000.K accounts for investment using the equity method. In 31/12/2020 balance sheet what amount should K report as its investment in P?

Select one:

a. 200,000

b. 277,000

c. 235,000

d. 240,000