On January 1, 2010, the Timber Company Acquired a 5

On January 1, 2010, the Timber Company acquired a 5% interest in the Twig Corporation through the purchase of 100, 000 shares of Twig's common stock for $540, 000.During 2010, Twig paid $40, 000 in dividends and reported net income of $100, 000.The market price of Twig's common stock was $5.20 per share on December 31, 2010.Timber should report the investment in the Twig Corporation on its December 31, 2010, balance sheet at

A) $520, 000
B) $527, 000
C) $540, 000
D) $545, 000