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On January 1, 2014, X Corporation purchased 20% of the outstanding voting common stock of Y Company for $300,000. The Book Value of the acquired shares was $275,000. The excess of cost over book value is attributable to an asset Y's books that had a remaining useful life of five years and is being depreciated straight line. For the year ended December 31, 2014, Y reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of X's investment in Y at December 31, 2014?

a.     $295,000

b.    $300,000

c.     $315,000

d.    $320,000

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