On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company for $450,000. For the year ended December 31, Dennehy reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. On December 31 , the carrying value of Matthews' investment in Dennehy under the equity method is
a. $444,000.
b. $456,000
c. $450,000
d. $462,000