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Raye Corp. owns 100% of the outstanding common stock of Luke Inc. On January 1,208,...

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Accounting

Raye Corp. owns 100% of the outstanding common stock of Luke Inc. On January 1,208, the book value of Raye's investment was $500,000. During
208, Luke generates net income of $200,000 and pays dividends of $10,000. What is the investment balance (book value) in the subsidiary at the end of
the year?
$500,000
$690,000
$650,000
$590,000
None of the above.
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