On January 3, 2021, Matteson Corporation acquired 40 percent of the outstanding common stock of...
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On January 3, 2021, Matteson Corporation acquired 40 percent of the outstanding common stock of OToole Company for $1,370,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $866,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2021, OToole reported net income of $278,000 and declared cash dividends of $30,000. On December 31, 2021, what should Matteson report as its investment in OToole under the equity method?
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