Use the Following Information to Answer Bellow Questions

Use the following information to answer bellow questions :
Exeter Company acquires 35% of the voting stock of Fenton Corporation for $7,000,000 on January 1, 2020. At the time, the book value of Fenton was $20,000,000. During 2020, Fenton reported net income of $3,000,000 and declared and paid dividends of $500,000. Both companies have December 31 year-ends, and the fair value of the investment at year-end was $9,000,000. Exeter uses the equity method to report its investment in Fenton stock.
-What is the investment balance on Exeter's balance sheet on December 31, 2020?

A) $7,000,000
B) $7,875,000
C) $9,000,000
D) $8,050,000