Clark Corporation Purchased 40% of IT Corporation for $125,000 on January

Multiple Choice

Clark Corporation purchased 40% of IT corporation for $125,000 on January 1.On May 20 of the same year,IT Corporation declared total cash dividends of $30,000.At year-end,IT Corporation reported net income of $150,000.The balance in Clark Corporation's Long-Term Investment in IT Corporation account as of December 31 should be:

A) $77,000
B) $125,000
C) $173,000
D) $197,000
E) $370,000