Catalyst Corporation Acquired 90 Percent of Trigger Corporation's Common Stock

Multiple Choice

Catalyst Corporation acquired 90 percent of Trigger Corporation's common stock on September 30, 20X8 for $225,000. At that date, the fair value of the noncontrolling interest was $25,000. On January 1, 20X8, Trigger reported the following stockholders' equity balances: Trigger reported net income of $80,000 in 20X8, earned uniformly throughout the year, and declared and paid dividends of $10,000 on June 30 and $30,000 on December 31, 20X8. Catalyst reported retained earnings of $250,000 on January 1, 20X8, and had 20X8 income of $120,000 from its separate operations. Catalyst paid dividends of $50,000 on December 31, 20X8. Catalyst accounts for its investment in Trigger Corporation using the fully adjusted equity method.
Based on the information provided, what is the balance of Catalyst's investment in Trigger Corporation as of December 31, 20X8?

A) $216,000
B) $225,000
C) $213,000
D) $215,000