Storm, Inc. purchased 100% of the outstanding common stock of Front, Inc. on 1/1/2X for $500,000 in cash and stock. Storm, Inc. accounts for the income of Front, Inc. using the Simple Equity Method, and during the year Front, Inc. reported Net Income of $130,000 and declared and paid dividends of $150,000. Assuming no other transaction between the two companies, the balance in "Investment in Front, Inc." on the books of Storm, Inc. on 12/31/2X will be:

Question 22 options:

a)

$480,000

b)

$350,000

c)

$520,000

d)

$650,000