Problem:
On January 1, 2013, Great Corporation purchased 25% of the common stock outstanding of Long Corporation for $250,000. During 2013, Long Corporation reported net income of $80,000 and paid cash dividends of $40,000. The balance of the Stock Investments-Long account on the books of Great Corporation at December 31, 2013 is:
A) $330,000.
B) $290,000.
C) $260,000.
D) $250,000.
Note: Please show the work not just the answer.