On January $1,20$X$1,$ Como Company purchased $45\%$ of the outstanding common shares of

the Lite Company for $$200,000.$ The net assets of Lite Company totaled $$400,000.$ The

inventory had a book value of $$100,000$ and a fair value of $$120,000.$ Excess cost attributable

to inventory is written off in $20$X$1.$ During $20$X$1,$ Lite Company earned $$200,000$ and

declared a dividend of $$40,000$ for the year.

The fair value of the Lite stock investment at the end of $20$X$1$ was $$210,000.$ Which of the

following amounts are correct assuming that Como elected to use the fair value option to

account for the Lite investment?

$20$X$1$ Income December $31,20$X$1$ carrying value

a$.$ $ $28,000$ $ $210,000$

b$.$ $ $81,000$ $ $263,000$

c$.$ $ $91,000$ $ $273,000$

d$.$ $ $18,000$ $ $210,000$

$65)\_\_\_\_\_\_$

A$)$ Option A

B$)$ Option B

C$)$ Option C

D$)$ Option D