RST invests $30,000 in 35% of ABC Co. common stock which they will account for using the equity method. ABC reports income in years 1 and 2 of $330,000 and $200,000, respectively. ABC pays dividends of $40,000 and $45,000 in years 1 and 2, respectively. What is the investment value on RST books at the end of year 2?

Group of answer choices

$560,000

$185,750

$475,000

$215,500

Answer rating: 100% (QA)

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