On January 1,20X4,Pony Company Acquired 25% of Stallion Company's Common

Multiple Choice

On January 1,20X4,Pony Company acquired 25% of Stallion Company's common stock at underlying book value of $200,000.Stallion has 80,000 shares of $10 par value,6 percent cumulative preferred stock outstanding.No dividends are in arrears.Stallion reported net income of $270,000 for 20X4 and paid total dividends of $140,000.Pony uses the equity method to account for this investment.
-Based on the preceding information,what amount would be reported by Pony Company as the balance in its investment account on December 31,20X4?

A) $200,000
B) $220,500
C) $232,500
D) $255,500