Bharrat Corporation Purchased 40% of Ferris Corporation for $100,000 on January

Multiple Choice

Bharrat Corporation purchased 40% of Ferris Corporation for $100,000 on January 1. On October 17 of the same year, Ferris Corporation declared total cash dividends of $12,000. At year-end, Ferris Corporation reported net income of $60,000. The balance in the Bharrat Corporation's Long-Term Investment-Ferris account at December 31 should be:

A) $124,000.
B) $80,800.
C) $95,200.
D) $119,200.
E) $100,000.