Question: Clark Corporation purchased 40 percent of IT Corp for 125,000 on Jan 1. On May twenty of the same year, IT Corp declared total cash dividends of USD 30,000. At year-end, IT Corp reported net income of USD 150, 000. The balance on Clark Corp’s long-term investment in IT Corp account as of Dec 31 should be:
[A] 173,000
[B] 197,000
[C] 370,000
[D] 77,000
[E] 125,000