On January 1, 20X4, Palmer, Inc

Multiple Choice

On January 1, 20X4, Palmer, Inc. bought 40% of the outstanding shares of Arnold Corporation at a cost of $137,000. The equity method of accounting for this investment is used. During 20X4, Arnold Corporation reported $30,000 of net income and paid $10,000 in cash dividends. At the end of 20X4, the shares had a market value of $150,000. At what amount should the Arnold investment be reported at on the December 31, 20X4 statement of financial position?

A) $150,000
B) $158,000
C) $145,000
D) $148,000