On January 2, 2017, Hull Corp.purchased 200 of the 1,000 outstanding common shares of Gatineau Ltd.for $120,000.During 2017, Gatineau declared total cash dividends of $20,000 and reported net income for the year of $80,000.If Hull uses the cost model to account for its investment in Gatineau, Hull's Investment in Gatineau Ltd.account at December 31, 2017 should be

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Under the cost model, the investment is initially recorded at its cost of acquisition and is subsequently adjusted only for dividends received.
Hull Corp. bought 200 shares at $120,000, which is the cost of acquisition of the investment. There were no other investments or transactions made by Hull Corp. during 2017.
Thus, the Investment in Gatineau Ltd. account at December 31, 2017 should still be $120,000.