On January 1,2014,Jeff Company Purchased Common Stock in Garcia Company

Multiple Choice

On January 1,2014,Jeff Company purchased common stock in Garcia Company for $1,000,000.Jeff Company treats the investment as available-for-sale securities.During 2014,Garcia Company earned $4,000,000 and paid dividends of $1,000,000.Assume that Jeff Company owns 10% of the outstanding shares of Garcia Company.The market value of the investment at December 31,2014 is $1,100,000.What is the balance in the Investment account at December 31,2014?

A) $1,000,000
B) $1,100,000
C) $1,400,000
D) $1,500,000