ABC IncAcquired 40% of the Voting Shares of DEF Inc

ABC Inc.acquired 40% of the voting shares of DEF Inc.for $200,000 on January 1,2001.On that date,DEF's Common Shares and Retained Earnings were worth $240,000 and $60,000 respectively.On that date,DEF's Book Values approximated their Fair Values except for DEF's Inventory,which had a market value $50,000 higher than book value,and DEF's Plant & Equipment,which was said to have a market value that was $80,000 higher than its book value.The inventory was subsequently sold to outsiders during the year.The Plant and Equipment had a remaining useful life of ten years from the acquisition date.During the year,DEF earned net income and paid Dividends in the amount of $100,000 and $10,000,respectively.
-What would be the carrying value of ABC's Investment in DEF on January 31,2001?

A) $200,000
B) $300,000
C) $290,000
D) $212,800