Pell Company acquires $80\%$ of Demers Company for $$500,000$ on January $1,2020.$ Demers reported

common stock of $$300,000$ and retained earnings of $$210,000$ on that date. Equipment was undervalued

by $$30,000$ and buildings were undervalued by $$40,000,$ each having a $10-$year remaining life. Any excess

consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an

annual review, goodwill has not been impaired.

Demers earns income and pays dividends as follows:

Assume the equity method is applied.

Compute Pell's investment in Demers at December $31,2020.$

A$.$ $$580,000.$

B$.$ $$574,400.$

C$.$ $$548,000.$

D$.$ $$542,400.$

E$.$ $$541,000.$

Compute Pell's investment in Demers at December $31,2021.$

A$.$ $$577,200.$

B$.$ $$604,000.$

C$.$ $$592,800.$

D$.$ $$632,800.$

E$.$ $$572,000.$

Compute Pell's investment in Demers at December $31,2022.$

A$.$ $$639,000.$

B$.$ $$643,200.$

C$.$ $$763,200.$

D$.$ $$676,000.$

E$.$ $$620,000.$

Compute Pell's income from Demers for the year ended December $31,2020.$

A$.$ $$74,400.$

B$.$ $$73,000.$

C$.$ $$42,400.$

D$.$ $$41,000.$

E$.$ $$80,000.$

Compute Pell's income from Demers for the year ended December $31,2021.$

A$.$ $$90,400.$

B$.$ $$89,000.$

C$.$ $$50,400.$

D$.$ $$56,000.$

E$.$ $$96,000.$