PLEASE PROVIDE EXPLANATION

Bertie Corporation invested in 25 percent shares of Keegan Corporation for $120,000 on the first day of the current year. Keegan Corporation reports net income of $40,000 and declares a $12,000 dividend during the year. Calculate the ending balance of Investment in Keegan Corporation account.

Multiple choice question.

$148,000

$127,000

$133,000

$142,000.