Question: Problem 2 (3 points) Pacer Company created Spur, Inc. four years ago and has been using the cost method to account for this investment. The

Problem 2 (3 points) Pacer Company created Spur, Inc. four years ago and has been using the cost method to account for this investment. The following account balances are found in each firm's financial statements of the current year, 2020: Accounts Pacer Spur Retained earnings, 1/1/20 $650,000 $275,000 Net income, 2020 290,000* 165,000 Dividends declared, 2020 160,000 90,000 Retained earnings, 12/31/20 780,000 350,000 Common stock and APIC, 12/31/20 840.000 568,000 (*The term "net income" means Pacer's investment income has been included.) Required: Provide the following figures: 1. Consolidated net income of Pacer and Spur, 2020: 2. Pacer's "Investment in Spur" at 12/31/20 (in Pacer's balance sheet)

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