Assume that Horicon NV acquired 25% of the ordinary shares of Sheboygan NV on January 1, 2025, for €300,000. During 2025, Sheboygan reported net income of €160,000 and paid total dividends of €60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2025, will be:

a. €300,000.

b. €325,000.

c. €400,000.

d. €340,000.