Exercise $2-7($Static$)$ Investment Value LO $2-3$

Port Company purchased $30,000$ of the $100,000$ outstanding shares of Sund Company common stock on January $1,20$X$2,$ for $$180,000.$ The purchase price was equal to the book value of the shares purchased. Sund reported the following:

Year Net Income Dividends

$20$X$2$ $ $40,000$ $ $25,000$

$20$X$330,000$

$20$X$45,000$

Required:

Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December $31,20$X$2,20$X$3,$ and $20$X$4.$