On December 31, 20X3, PC Company acquired 60% of the 10,000 outstanding voting shares of SL Limited for $295,000. The SFP and fair market values for SL Limited were:

The capital assets have a remaining useful life of 10 years. The bonds mature on December 31, 20X7.

On December 31, 20X4, SL issued an additional 6,000 shares to PC for $130,000. SL had a net income of $60,000 for the year ended December 31, 20X4, and $70,000 for the year ended December 31, 20X5. SL declared and paid $5,000 in dividends in 20X4 and $10,000 in 20X5.

Required
Calculate the balance in the investment in SL Limited€™s account on December 31, 20X5, assuming PC uses the equity method.

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SL Limited Statement of Financial Position December 31, 20X3 Fair market value Carrying value $ 100,000 $100,000 Cash Accounts receivable 250,000 250,000 Inventory 300,000 250,000 Capital assets (net) 800,000 900,000 $1,450,000 $ 300,000 Accounts payable 325,000 Bonds payable 800,000 800,000 Common shares 100,000 Retained earnings 250,000 $1,450,000