On January 1, 2014, Palmer, Inc. bought 40% of the outstanding shares of Arnold Corporation at a cost of $137,000. Palmer uses the equity method of accounting for this investment. During 2014, Arnold Corporation reported $30,000 of net income and paid a total of $10,000 in cash dividends. At the end of 2014, the shares had a fair value of $150,000. At what amount should the Arnold investment be reported at on the December 31, 2014 balance sheet?
A) $150,000.
B) $157,000.
C)$145,000.
D)$163,000.

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The Answer of On January 1, 2014, Palmer, Inc. bought 40% of the outstanding shares of Arnold Corporation at a cost of $137,000. Palmer uses the equity method of accounting for this investment. During 2014, Arnold Corporation reported $30,000 of net income and paid a total of $10,000 in cash dividends. At the end of 2014, the shares had a fair value of $150,000. At what amount should the Arnold investment be reported at on the December 31, 2014 balance sheet?
A) $150,000.
B) $157,000.
C)$145,000.
D)$163,000.