Spinebill Corporation bought 80% of Nectar Companys common stock at its book value of $500,0 00 on

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Question:

Spinebill Corporation bought 80% of Nectar Company’s common stock at its book value of $500,0 00 on January 1, 2005. During 2005, Nectar reported a net income of $150,000 and paid dividends of $45,000. At what amount should Spinebill’s Investment in Nectar account be reported on December 31, 2005?

a. $500

b. $548

c. $584

d. $605