Madison Corporation Purchased 40% of Jay Corporation for $125,000 on January

Multiple Choice

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

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