Bharrat Corporation purchased 40% of Ferris Corporation for $100,000 on January 1. On October 17 of the
same year, Ferris Corporation declared total cash dividends of $12,000. At year-end, Ferris Corporation
reported net income of $60,000. The balance in the Bharrat's Equity Method Investments-Ferris account at
December 31 should be:
OA. $80,800
O B. $100,000
O C. $95,200
O D. $119,200
O E. $124,000