On January 1, 2012, Cashew Corporation Purchased 70,000 of the 210,000

Multiple Choice

On January 1, 2012, Cashew Corporation purchased 70,000 of the 210,000 shares of outstanding stock of Peanut Company for $550,000. Net income reported by Peanut Company for 2012 was $450,000. Dividends paid by Peanut Company during 2012 were $150,000. The long-term investment will appear on Cashew Corporation's December 31, 2012 balance sheet in the amount of:

A) $650,000.
B) $450,000.
C) $850,000.
D) $700,000.