P Corporation Purchased an 80% Interest in S Corporation on January

Multiple Choice

P Corporation purchased an 80% interest in S Corporation on January 1, 2013, at book value for $300,000.S's net income for 2013 was $90,000 and no dividends were declared.On May 1, 2013, P reduced its interest in S by selling a 20% interest, or one-fourth of its investment for $90,000.What would be the balance in the Investment of S Corporation account on December 31, 2013?

A) $300,000.
B) $225,000.
C) $279,000.
D) $261,000.