On January 1, 2014, Lark Corporation purchased 35% of the common stock outstanding of Dinc Corporation for $700,000. During 2014, Dinc Corporation reported net income of $200,000 and paid cash dividends of $100,000. The balance of the Stock Investments-Dinc account on the books of Lark Corporation at December 31, 2014 is

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The initial investment of Lark Corporation was $700,000 for 35% of Dinc Corporation. Therefore, the total value of Dinc Corporation was $2,000,000 (calculated as: $700,000/35% = $2,000,000). 
During 2014, Lark Corporation would have recognized 35% x $200,000 = $70,000 as its share of Dinc Corporation's net income. 
The balance of the Stock Investments-Dinc account on the books of Lark Corporation at December 31, 2014 would be:

$700,000 (initial investment)
+ $70,000 (share of net income)
- $35,000 (share of dividends) 
= $735,000

On January 1, 2014, Lark Corporation Purchased 35% of the Common