Transcribed Image Text: On January 1, 2011, Goodwill Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that date, Short’s book value

Transcribed Image Text: On January 1, 2011, Goodwill Corporation purchased 25% of the outstanding
voting shares of Short Supplies common stock for $210,000 cash. On that date,
Short’s book value and fair value were both $840,000. The equity method is
deemed appropriate for this investment. Short’s net income reported on
December 31, 2011, was $80,000. During 2011, Short also paid cash dividends in
the amount of $24,000.
Required:
Compute the amount that would be reported for the investment on Goodwill
Corporation’s financial statements at December 31, 2011.

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