On January 1, 2014, the Leaf Company Acquired a 5

On January 1, 2014, the Leaf Company acquired a 5% interest in the Trunk Corporation through the purchase of 100,000 shares of Trunk's common stock for $640,000; the investment is recorded on Leaf's books as available-for-sale. During 2014, Trunk paid $40,000 in dividends and reported net income of $100,000. The market price of Trunk's common stock was $6.20 per share on December 31, 2014. Leaf should report the investment in the Trunk Corporation on its December 31, 2014, balance sheet at

A) $620,000
B) $627,000
C) $640,000
D) $645,000