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At what amount should Mike report the investment in equity

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Question - On January 1, Year 1, Mike Corp. purchased 3,000 shares of Abik Co.'s 10,000 outstanding shares of common stock for $15 per share but did not elect the fair value option. On December 20, Year 1, Abik declared and paid $50,000 in dividends to its common shareholders. Abik's net income for the year ended December 31, Year 1, was $180,000. At December 31, Year 1, Abik is trading at $20 per share. At what amount should Mike report the investment in equity securities of Abik in its December 31, Year 1, balance sheet?

a. $60,000

b. $114,000

c. $84,000

d. $99,000

Reference no: EM132630162

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