On January 1, 2008, Sloane Co

On January 1, 2008, Sloane Co. purchased 25% of Orr Corp.'s common stock; no goodwill resulted from the purchase. Sloane appropriately carries this investment at equity and the balance in Sloane's investment account was $720,000 at December 31, 2008. Orr reported net income of $450,000 for the year ended December 31, 2008, and paid common stock dividends totaling $180,000 during 2008. How much did Sloane pay for its 25% interest in Orr?

A) $652,500
B) $765,000
C) $787,500
D) $877,500