On January 1, 2020, the Clutz Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess of the purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported a net income of $8,000,000 and paid cash dividends of $2,000,000 during 2020.

The investment in Nancy Company stock should be reported on Clutz's December 31, 2020, balance sheet at

a. $15,600,000.

b. $15,000,000.

c. $16,500,000.

d. $17,400,000.

Answer rating: 100% (QA)

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