Question: On January 1, 2008, Jonsey Corporation purchased 30% of the common stock outstanding of Karsen Corporation for $200,000. During 2008, Karsen Corporation reported net income of $80,000 and paid cash dividends of $40,000. The balance of the Stock Investments-Karsen account on the books of Jonsey Corporation at December 31, 2008 is
a. $200,000.
b. $240,000.
c. $280,000.
d. $212,000.