Gilman Company Purchased 100,000 of the 250,000 Shares of Common

Multiple Choice

Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 20X0, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 20X0: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 575,000 \\\hline \text { Dividends declared and paid during December 20X0 } & \$ 30,000 \\\hline \text { Market price per share } & \$ 42.00 \\\hline\end{array}$$
-At what amount should Gilman Company report the Burke investment on the December 31, 20X0 statement of financial position?

A) $4,218,000
B) $4,000,000
C) $4,124,000
D) $3,800,000